Today, crude oil investors are on hold as they await the Energy Information Administration report (EIA) later today in the U.S. session. Let's get ready to trade the news.

According to the latest American Petroleum Institute (API) inventory figures, the crude oil recorded a draw of 5.78 million barrels after the draw of 3.60 million barrels last week. An increased draw in inventories signals the increased demand for crude oil. In response, the crude oil is trading with bearish weight.  

How to Trade EIA Report?

As we know there is a positive correlation between API report and EIA report. API showed heavy draws in last week's inventories. Now, investors are expecting a draw of -1.8M Million in the actual release of EIA inventory data at 14:30 (GMT) today.

Impact of EIA Report

If the actual is -1.8 Million, the crude oil is likely to remain slightly bullish. However, if the draw increases to -5 million or more, the crude oil price will soar nearly 50+ pips on release.

EIA Reports Draw of – 5 Million

• Buy Crude Oil at CMP for 50 – 60 Pips

EIA Reports Build of + 2 to 5 Million

• Sell Crude Oil at CMP for 50-60 Pips

WTI Crude Oil Trade Plan

I'm keeping an eye on $46.15, below this the oil will target $45.60. On the other hand, above $46.15 oil can target $46.85. Check out FX Leaders News Trading Strategy to brush up on your trading skills. Good luck.