What's up fellas! As mentioned in my previous update Bullish Crude Oil – Stuck In Triangle Pattern,  undoubtedly I was bullish on the Crude Oil but really wasn't expecting such a huge fluctuation. Let me share the major reason behind this bullish move.

Fundamentals Analysis – WTI Crude Oil

On Friday, the members of the Organization of the Petroleum Exporting Countries (OPEC) and other major producers met in Vienna and promised to ensure the idea of prolonging the output-cut agreement until March 2018. The agreement will result in lowering Oil supplies and ultimately supporting the prices.

In addition to this, the Turkish President Tayyip Erdogan warned that Turkey could lay off the pipeline that transports the Oil from Northern Iraq to the outside world. Consequently, the investors increased their demand for Oil in order to avoid any shortages.

API Weekly Crude Oil Stock    

The American Petroleum Institute is due to report the weekly inventory levels of U.S. crude oil, gasoline and distillates stocks. The figure shows how much oil and product is available in storage. The indicator gives an overview of U.S. petroleum demand. The draw in inventories increases the prices of Crude Oil, whereas, the inventory builds diminishes the prices over lower demand concerns.

The time of release is tentative, but it's most often released during the U.S. sessions. The previous figure reported a build of 1.443 M barrels. Let's wait and watch for the new figures.

WTI Crude Oil – Trading Plan

Yesterday during the U.S. session, we shared a forex trading signal to sell at $52.10 with a stop above $52.50 and take profit below $51.35. But, our trade seems to stuck in the red zone. I believe we should lower our positions here as the market is totally dependent upon the API report coming out during the U.S. sessions.