WTI Crude Oil Stocks Reports Come In Extremely Negative - Forex News by FX Leaders
oil

WTI Crude Oil Stocks Reports Come In Extremely Negative

Posted Wednesday, April 4, 2018 by
Shain Vernier • 1 min read

The WTI crude oil inventory cycle is complete and the markets are taking note. Whipsaw trading has defined May WTI futures, with price rebounding from session lows near $62.00 to above $63.00. Action is extreme, featuring high volumes and an early session range of 158 ticks.

Just over an hour ago, the crude oil inventory cycle for the week was concluded. Here are the hard numbers:

  • API Weekly Crude Oil Stock:   -3.280 million barrels, down from 5.321 million
  • EIA Crude Oil Stocks Change: -4.617 million barrels, under projections of 0.246 million

Both of these figures are well below expectations. It appears as though production cuts from OPEC and a harsh early Spring weather cycle for North America are impacting supplies. Upon the EIA release, May WTI has rallied more than 70 ticks as traders have piled in on the buy side.

WTI Crude Oil Technicals

WTI crude was in a pronounced intraday downtrend going into the EIA release. Since the lagging stocks report hit the wires, bulls have entered the market in force.

WTI
May WTI Crude Oil Futures (CL), Daily Chart

Overview: At press time, May WTI crude futures are trading between the Bollinger MP ($63.21) and Daily SMA ($62.04). This is a non-committal area. Rejection of the Daily SMA suggests that WTI crude may have found an intermediate bottom just above the $62.00 handle.

The extreme nature of the stocks reports have influenced pricing greatly. For the near-term, I will be on the lookout for compression between $62.00 and $63.25. If this scenario plays out over the next session-and-a-half, a directional move may be in the cards for Friday.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

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.
Related Articles
The Euro has entered another bearish phase after Mario Draghi mentioned rate cuts today
12 hours ago
Comments

Leave a Reply

avatar
  Subscribe  
Notify of