Crude oil prices gained a bullish momentum to trade above $70/ barrel, despite OPEC’s decision to increase output by 1 million barrels. There are multiple reasons behind this, let’s speak about them…

API Stockpiles Report

On Tuesday, the American Petroleum Institute (API) reported a draw of 9.2 million barrels for the week ending on June 22. This shows a massive increase in the demand for crude oil during the previous week. Perhaps, the speculators increased their bets on oil ahead of the OPEC meeting during the weekend.

EIA Inventories Report

The EIA (Energy Information Administration) report is coming out at 14:30 (GMT). As per economists’ forecast, the data is expected to show a draw of -2.4M vs. -5.9M previously.

Newbies, there’s a positive correlation between the API and EIA reports. For instance, if API reports a draw in inventories, EIA is also expected to do the same. But, the reports also differ sometimes. So, can we expect a draw of around -9 million from EIA? Well, we have to see.

Trump Push to Isolate Iran

The POTUS (President of the United States) conveyed to all countries to stop importing Iranian oil from November, in order to ramp up pressure on Iran. That’s increasing the uncertainty in the global markets and as Iran is the third largest producer of crude oil and supplies from it covers a significant demand in the market.

WTI Crude Oil – Trade Plan

We just shared a forex trading signal to open a buy position above $71.10 with a stop below $70.85 and a target of $71.40. Good luck.