Trying to interpret the weekly crude oil inventory stats released each Wednesday is something all oil traders and investors have to do but often the numbers quoted by the “experts” can appear very wide of the mark.  However, understanding and harnessing the sometimes volatile response to these number can make for some very profitable trades.  Here is the forecast for this week:

Crude oil inventories are expected to fall by 400,000 barrels, according to the mean of 12 analysts’ forecasts.  Gasoline inventories are seen declining by 700,000 barrels while stocks of distillate, which includes heating oil and diesel, are expected to rise by 700,000 barrels.  Refinery use is seen rising by 0.3 percentage point to 84.4% of capacity.

Yesterday the the American Petroleum Institute reported a 3.2m barrel drop in oil inventories, a 2.8m barrel decline in gasoline stocks and a 900,000k increase in distillate inventories. Refinery runs were pegged at 84.5% of capacity.

Trading oil futures is difficult at the best of times which is why it is so important to use an oil broker who can offer the widest possible oil market experience, tight spreads and low margins.  In addition the best oil brokers will also offer an outstanding trading platform such as the metatrader4, one of the most respected and trusted retail platforms.  For more information and to download an online oil trading account click any of the highlighted links.   Moreover, if you want a daily technical analysis for the WTI oil contract just visit our sister site daily oil prices -  Good luck and good trading.

October crude oil futures look as though they will finish the month of August just about where they started following two failed attempts at the $75 per barrel price point just as the USD Index was unable to post new lows.  With thin volumes in this holiday shortened week and next Monday’s Labor Day we can expect a degree of price volatility and over reaction to any fundamental data or news.   With China’s Shanghai Composite posting fresh lows and tomorrow’s release of China’s Purchasing Managers’ Data, US ISM, Wednesday’s factory orders and Non Farm Payroll on Friday will all, no doubt, conspire to keep oil traders on their toes.  This heady combination of factors could even provoke yet another technical “spike up” to re-test the $75 per barrel price point despite a continued large supply surplus.  If oil trading were restricted to market oil supply and demand fundamentals would put oil prices at around $60-$65 per barrel.

Trading oil futures is difficult at the best of times which is why it is so important to use an oil broker who can offer the widest possible oil market experience, tight spreads and low margins.  In addition the best oil brokers will also offer an outstanding trading platform such as the metatrader4, one of the most respected and trusted retail platforms.  For more information and to download an online oil trading account click any of the highlighted links.   Moreover, if you want a daily technical analysis for the WTI oil contract just visit our sister site daily oil prices -  Good luck and good trading.

Moves by the CFTC to try and regulate the oil trading market and prevent the kind of speculation which has seen crude oil prices rise from $30 per barrel back towards $70+ this year took an interesting twist yesterday when it was announced that the weekly COT data would now include new details on the aggregate holdings of the big Wall Street dealers, hedge funds and other financial participants.    COT data is a useful market sentiment tool but as many of the market participants both hedge and speculate it has become increasingly difficult to analyse.   According to the CFTC the new format will be making its debut next Friday.

Trading oil futures is difficult at the best of times which is why it is so important to use an oil broker who can offer the widest possible oil market experience, tight spreads and low margins.  In addition the best oil brokers will also offer an outstanding trading platform such as the metatrader4, one of the most respected and trusted retail platforms.  For more information and to download an online oil trading account click any of the highlighted links.   Moreover, if you want a daily technical analysis for the WTI oil contract just visit our sister site daily oil prices -  Good luck and good trading.