WTI Crude Oil Report: U.S. Mid-Session Recap & Inventories
Shain Vernier • 2 min read
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.
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
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.