A few minutes ago, the weekly crude oil inventory cycle got underway with the API Stocks report. Upon its release, volatility facing the May WTI crude futures contract spiked, driving prices to a close above $59.00 for the second time in as many days. The recent trend is bullish and today’s API figure has thrown more fuel on the fire.

The API Crude Oil Stocks Are In…

One of the key parts of the API weekly stocks report is that it is proprietary in nature. In order to receive the report in real-time, you must subscribe to the service. This is much different than the EIA inventories statistics that are publicly released on Wednesdays.

Even though the figure was not immediately available to all market participants, the WTI price action following the 4:30 PM EST release was decisively bullish. It stands to reason as the API reported a draw on supply, coming in at -2.33 million barrels.

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

For tomorrow’s session, there will be two levels on my radar for this market:

  • Resistance(1): Psyche Level, $60.00
  • Support(1): 38% Retracement, $57.95

Bottom Line: Tuesday’s failure of May WTI futures to eclipse $60.00 may have put a short-term top on this market. However, the bullish trend is still in play and seasonal buying pressure is best not ignored.

As long as today’s high of $59.86 holds firm, I will have buys queued up from above the 38% retracement at $58.06. With an initial stop at $57.48, this trade produces 50 ticks on a slightly sub-1:1 risk vs reward management plan.

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