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US CRUDE OIL INVENTORIES

It’s not a secret that US crude oil inventories have been experiencing a major decline until about a month ago, which started at the end of August. Although this market release is announced on a weekly basis, last 3 times the actual figures came out, we were all in for a great surprise: While forecast was set at 1.6M, 1.3 M and 0.4M, respectively, actual figures came out to be +14.42M, +2.4M and 5.3M. It seems as if we are starting to see a pattern here, where actuals exceed forecasts, and this might indicate on a trend. But how is that even possible? What exactly happened to crude stockpiles, that made them suddenly burst up?

In fact, inventories were indeed expected to rebound. With that being said, and as bizarre as that might sound, while writing these lines, OPEC members are shooting for crude oil priced at around $60 per barrel in the event that a production agreement will be agreed upon between them and Iran by the end of this month. Although it doesn’t seem realistic, in the event that crude inventories increase will come out once again higher than expected, we might see another sky rocketing figures arriving very shortly.

On the other hand, it seems as if a strong pressure is starting to build up on OPEC to resolve some issues in the next couple of days until the release of the announcement. If so, inventories data is undoubtedly something traders should be looking forward to in great anticipation. Another strong increase in inventories may intensify concerns of over-supply in the US market and might reinforce a negative sentiment. On the contrary, a substantial drop in inventories should be considered important in establishing a positive short-term sentiment.

It is quite worth mentioning that as of pre-market trading price this Monday, Brent crude oil was touching the $48 per barrel, which is an increase of about 60% from its lowest price level of this year. As always, there can only be 2 possible outcomes: either the price of oil will increase or decrease, all depends on the actual results. Since all eyes would be on the numbers, you too could follow the news and trade on this announcement each and every week starting from today!

*Risk Warning: The article has been written by a CYSEC licensed investment advisor. The report is written based on historical data from which a statistical inference has been made in order to give probable outcomes from the event. Future performance or results are not guaranteed to mimic those of the past. Trading Binary Options carries a high degree of risk which may result in losses of some or all of your trading capital.

Wednesday, 21 Dec, 2016 / 8:08

Note: Company News is a promotional service of the Directory and the content isn't created by Finance Magnates.

Source : https://www.opteck.com/blog/us-crude-oil-inventories/

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