United States Crude Oil Inventories April 7 2021

Investing and Markets 📈
1

What does the data mean to the market?

The data indicates the number of crude oil barrels held by commercial firms in the US; this inventory is taken weekly and indicates increases or decreases needed in supply which then affects the price. A Positive number is bad for the oil price. There is other oil data released the night before this report, API Weekly Crude Oil Stock, which the market looks for as an indicator of today’s report, which can gauge how it will respond.

There are two mainline of data to focus on. DOE Gasoline Inventories and DOE Crude Oil Inventories, the two lines must not conflict to make this data tradeable; Oil is the driving force behind this report.

Historic Deviations and Their Outcome

March 31 2021 Not much of a deviation on this, but it seems Gasoline won the day!

March 24 2021 Not much of a deviation, but Gasoline seems to have driven price action, and maybe API wasn’t considered so much by the market this time?

My Forecasts For Today

DOE Crude Oil Inventories -1000
DOE Gasoline Inventories 0

Today’s Trade Plan

If we get ±4000 from OIL and no conflicts from Gasoline, we can expect a sustained move from Crude OIl or Brent.

Note that I have used hybrid forecasts to accommodate the following.

  1. Official DOE Crude Forecast = -1416

  2. API Actual Crude = -2618

  3. Official DOE Gasoline Forecast = -2465

  4. API Actual Gasoline = +4553

Tradeable Pairs

USDBNT
USDOIL

Hope this helps but please do your own analysis!!

Good luck!!

James Thatcher

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

1 Like
2

We didn’t see much of a deviation on this report. Oil price bounced up and backed down before finding a bearish direction for the rest of the trading session. This data did not shock the market, and I didn’t take a trade. Unlike most of the data I trade, Crude Oil Inventories are weekly, so not long to wait until I get another shot at making some pips here.