Crude Oil Ready For A Bullish Breakout – Inventories In Focus

Arslan Butt•Thursday, April 13, 2017•1 min read

Since this morning, the crude oil has traded mostly unchanged around $53 after a sharp fall yesterday. Despite all the global uncertainty, investors failed to support the falling oil prices.

Yesterday, the Energy Information Administration (EIA) reported a decline in crude oil inventories by 2.17 million barrels over the previous week. A drop in inventory figures was supposed to underpin oil prices, however it thoroughly disappointed.

Additionally, the EIA’s record revealed that last week the U.S. crude production rose by 36,000 barrels/day. The increase in production results in more supply and ultimately a fall in prices. The EIA also said that they are expecting record crude oil production from the United States in the year 2018.

WTI Crude Oil - 30 Mins Chart WTI Crude Oil – 30 Mins Chart

Forex Trading Signal

Honestly, today the market is at all not volatile. However, we still have something for you. Looking at the hourly chart, we can see the prices are crossing above 50 periods EMA along with the RSI. This double crossover is suggesting a good buying trade in the oil.

I recommend that investors take up a buying trade above $53, along with a stop loss below $52.80 and a take profit at $53.25.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.