Major Reasons to Trade WTI Crude Oil Today! - Forex News by FX Leaders

Major Reasons to Trade WTI Crude Oil Today!

Posted Wednesday, October 18, 2017 by
Arslan Butt • 1 min read

Fellas, it's EIA inventories day and the muted Crude Oil can offer us some breakout opportunities on release. This is how we can trade the Oil today!

WTI Crude Oil – Fundamentals Analysis

Earlier, the Crude Oil lifted by a decline in the U.S. crude inventories. The investors are also concerned about the tensions in the Middle East as these could disrupt supplies.

The API (American Petroleum Institute) reported a drop in inventories by 7.1 million barrels in the last week. The drop was highly unexpected and caused a major bullish wave in the Oil.

EIA Weekly Crude Oil Stock

Likewise, the EIA (Energy Information Administration) will be releasing the Crude Oil inventories report today at 14:30 (GMT). It's expected to show a draw of -4.7M barrels which are quite likely. The reason is demand for Chinese markets should be back in the previous week and the impact of Hurricane is almost over.

Crude Oil - 4 - Hour Chart - Sideways Range Crude Oil – 4 – Hour Chart – Sideways Range

Crude Oil – Trading Plan

Today, the $52.75 is a very solid level for Crude Oil. Above this, it will be nice to stay bullish until $53.45. Whereas below $52.75 the Oil is likely to stay bearish until $51.50. Now the ball is in the pocket of EIA inventories as the Oil will determine it's further trend after the news. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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