Top 3 Things to Know about Crude Oil Today

Crude oil prices are under pressure since the OPEC (Organization of Petroleum Exporting Countries) is thinking of increasing the output in order to deal with the potential shortage from Iran. Taking the benefit, our forex trading signal managed to get us 30 green pips. The next trade is likely to be in the U.S. session, but we need to mind three things before the trade. Check it out..

Three Things to Know Today

First – The EIA report is coming out at 14:30 (GMT) and that will be a deal maker today. On Tuesday, the API reported a draw of 2.02 million barrels in inventories and today economists are expecting the same from EIA. There’s a positive correlation between these two figures, so we can expect a draw of around 2M but it is going to be exciting to trade the divergence.

Let’s say, a draw of up to 5 Million can drive 80-100 pips buying in the crude oil. Whereas, the build of 3-5 Million will give us a chance to short the WTI.

Secondly, the OPEC members will be meeting on June 22 to determine the crude oil output. Until then the oil prices are likely to remain under pressure.

WTI Crude Oil – Daily Chart

Thirdly, crude oil prices have reached below a solid resistance zone of 65.85 and that’s where we enter a forex trading signal to short the oil. The bullish trendline which was violated during the previous week is now working at a resistance of $66.

Bellow $66, crude oil has a chance to go after $64, but again the price action will highly depend upon the EIA report later today during the U.S. session.

WTI Crude Oil – Trade Plan

I’m planning to stay bearish below $65.75 to target $65 and $64, whereas my buying limit is set at $63.85. Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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