WTI Crude Oil Report: More Compression?

If you want action, then there is no better place to look than an EIA Crude Oil Stocks report. A flurry of orders hit the market instantaneously creating chaotic price action facing crude oil products. WTI crude oil futures typically see incredible volumes as long-term investors and day traders collide.

The Hard Data

EIA crude oil stocks came in today at -8.945M, well below the projected -3.058M. Last week’s release measured -6.451M, yet another negative number.

So, what does it all mean? To the market, not much. We have been consistently surprised by the inventories, and the market has refused to pick a direction. A supply number that far below estimates should have created at least a moderate bump-not more compression.

September WTI Crude Oil Futures- 30-Minute News Release

As my colleague Arslan discussed earlier today, WTI crude is stuck in rotation between $47.00 and $48.00. Unfortunately, the EIA report didn’t help out much in that regard.

Bottom Line: September WTI crude is trading in a 54 tick daily range. The 30 minute EIA news bar has traded both extremes of the daily range. For now, the play is to wait for this market to open up a bit and pick a direction.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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