WTI Crude Oil Report: U.S. Mid-Session Recap & Inventories

The U.S. session has been relatively uneventful for October WTI crude oil futures. As of this writing, October crude is trading between $47.75 and $48.00. Tight trading conditions have dictated a modest 85 tick daily range. After the furious action of the past few sessions, crude oil is taking a breather.

Inventory Cycle

Every Tuesday afternoon the inventory cycle for crude oil begins. The data releases bring big players to the market executing trades from an institutional perspective. If you are in an open position during the following times, stay protected and on your toes!

• Tuesday 4:30  PM EST            API Crude Oil Stocks, previously -9.2M barrels

• Wednesday 10:30 AM EST      EIA Crude Oil Stocks, previously -8.945M barrels

Today’s Action

As I said, today has been tight. The U.S. close and API inventory release this afternoon should bring some action to the table and open the range up a bit.

Daily Chart-October WTI Crude Oil Futures

For now, the road map for crude is fairly straightforward. Here are the keys:

• Monday’s low of $47.21 is a potential late-day launch point to a test of last week’s low $46.62.

• MP/SMA crossover and Monday’s 1 tick failed auction above Friday’s high are bearish signals.

• Resistance at 62% $48.93 has held through two tests. If it is taken out in the near future, we should see an immediate run to $50.00

Bottom Line: Currently, I am bearish towards October WTI crude. However, for the U.S. session traders look to be in a holding pattern ahead of the news releases. I am following suit and taking a "wait and see approach" ahead of this afternoon’s API release.

If you are in the crude market, trade smart and watch the money management.

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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