WTI Crude Oil Report: More Compression?
Shain Vernier • 1 min read
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.