Since this morning, 'black crack' is consolidating in the very narrow range of $45.60 – $46 after ticking up more than 190 points yesterday in the U.S. session.  

One of the reasons was the latest American Petroleum Institute (API) inventory figure which reported a draw of 8.13 million barrels after the draw of 5.76 million barrels last week. The draw is significantly higher than the previous one, which testifies of a sturdy demand for petroleum products.

What To Watch Out Now?

Today, the Energy Information Administration (EIA) is due to release inventories at 14:30 (GMT) with an expectation of a -3.2 million barrels draw, which is lower than the -6.3 million draw in the previous week.

Traders are likely to wait for inventories ahead of entering any positions on WTI crude oil. So, we need to do the same.

Forex Trading Signal Idea

I'm speculating that the inventory draw is already priced in, therefore, the oil price may drop on the release of the EIA report. Having said that, I have placed a sell stop at $45.57 with a stop loss at $45.85 and a take profit at $45.35. We can add a second take profit at $44.85.