Crude Oil Traders Await EIA Report – How to Trade Today? - Forex News by FX Leaders

Crude Oil Traders Await EIA Report – How to Trade Today?

Posted Wednesday, September 12, 2018 by
Arslan Butt • 1 min read

Oil prices surged to $69.90 following a report of slump in US crude inventories. Moreover, the looming sanctions against Iran boosted sentiments of tightening supply.

As discussed in Sep 12 – Economic Event’s Brief, the EIA crude oil stockpile report is one of the most important economic events today. The inventories are expected to drop by -1.3M vs. -4.3M during the previous week.

But the thing is, the American Petroleum Institute (API) reported a drop of 8.6 million barrels in the week to September 7 to 395.9 million barrels. As we know, there’s a strong positive correlation between the API and EIA report. So, investors are likely to expect the same from EIA and are likely to continue to price in the sentiment.

Well, crude oil is also bullish as per the technical indicators. For instance, the WTI prices have crossed above the 50- periods EMA at $69.45. The same level is working as a support now.

So, all I’m gonna do is to look for a bullish enter above $69.45 to target $70.40 and $71.20, but that’s before the news. After the release of the news, the scenario can be totally opposite. So stay tuned to FX Leaders for more updates!

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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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