Crude Oil Maintains The Trading Range – EIA Report May Trigger a Breakout

Today the EIA remains under the spotlight as it's due to release Crude Oil Inventories at 14:30 (GMT). Economists are expecting a build...


Looks like the market is too busy with Brexit that they forgot about crude oil. It’s been trading in the same range since the second month of 2019. However, the market is slightly bullish today due to ongoing electricity blackout in Venezuela and the crude oil output cuts by the OPEC and Non-OPEC members.

The second most important thing that happened yesterday was that the American Petroleum Institute (API) published a surprise draw in crude oil stocks of -2.6 million barrels for the week ending March 8. Although it’s not a huge draw, it’s significantly under the analyst forecast of 2.655 million barrels build in inventories.

Today the EIA remains under the spotlight as it’s due to release Crude Oil inventories at 14:30 (GMT). Economists are expecting a build of 2.7 million barrels. So here’s the thing, a draw of more than 2 million barrels will drive strong bullish trend in Sterling.

Conversely, the EIA reporting a build of over 5 million will trigger sharp selling in crude oil.

Support Resistance
56.63 57.32
56.24 57.62
55.55 58.32
Key Trading Level: 56.93

WTI Crude Oil – Trade Plan

The idea remains the same – to trade sideways by selling at the top around $58 and buying above the lower corner of the trading range at $55.

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.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers