WTI Crude Oil Sideways Range – Potential Trade on EIA Report!
Arslan Butt • 1 min read
The bullish crude oil takes a breather ahead of the EIA report later today. As we know, the recent trade war between China and the US has troubled Chinese businesses by slapping steep import tariffs on hundreds of goods in the past few months.
Looks like China is retaliating in a way – Chinese oil importers have shied away from new orders recently. A drop in demand has slowed the bullish rally in crude oil.
Anyway, today investors’ focus remains on the EIA inventory report which is due at 14:30 (GMT) with a forecast of 1.1M build vs. 1.9M build earlier. The thing is, companies seem to fuel the crude oil demand ahead of Iran’s sanctions which are expected to be inflicted in November. Therefore, we can expect a draw in inventories.
Technically, crude oil is consolidating in a narrow trading range of $74.95 – $75.75. The build-in inventories is likely to cause a bearish breakout and can lead oil prices towards $74.65 and $74.35.
On the flip side, the draw in inventories can cause a bullish movement until $75.75 and $76.20. Let’s wait for the news to capture quick pips.