Crude Oil Eyeing EIA Figures, 'Yoyo-Trade' Exited After Hitting Projected Targets
Sunshine Profits | Nov 10, 2021 03:51PM ET
Is crude really set to break its highs again?
Fundamental Analysis
Crude oil prices reached their last highs on Wednesday before pulling back, initially supported by U.S. crude stocks falling as shown by API figures, and afterwards cooled by contrary prospects from the U.S. Energy Information Administration (EIA).
Meanwhile, our subscribers were exiting their last oil trade , after the black gold hit the second projected target at $83.40 (see technical chart).
U.S. API Weekly Crude Oil Stock:
Inventory levels of U.S. crude oil, gasoline and distillates stocks, American Petroleum Institute (API) via Investing.
Regarding the API figures published Tuesday, the decline in crude inventories (with 2.485 million barrels versus 1.900 million barrels expected) implies greater demand and is normally bullish for crude prices (at least in theory). This was indeed the case yesterday, as those figures have supported crude prices in the first place.
In the perspective of the figures to be published later today by the U.S. Energy Information Administration (EIA), and according to the median of analysts surveyed by Bloomberg, the market would expect an increase of 1.6 million barrels, so let’s see whether this figure will be confirmed.
Chart – WTI Crude Oil (CLZ21) Futures (December contract, daily chart)
In summary, with an oil market progressing (with some rallying limitations set by threats of the U.S. administration to release some of its strategic crude reserves – to relieve the market by artificially increasing the supply) – there is currently no trade position justified from a risk-to-reward point of view.
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