[VIDEO] WTI Crude prices may hinge on this week’s supply data

If we see an excess supply in the data this week, price is likely to move lower

Energy 5

WTI Crude prices may hinge on this week’s supply data

After the close today well get oil inventory data from the American Petroleum Institute.  Last week we got a draw of 4.261M bpd, which helped WTI continue its ascent higher.  Tomorrow well get EIA supply.

If we see an excess supply in the data this week, price is likely to move lower. If we see another draw, price is likely to continue higher. 

In addition, WTI and the S&P 500 are highly correlation with a correlation coefficient of .93. If the S&P 500 moves lower, is may likely to pull crude oil down with it.  Also notice that although the RSI has pulled back, it is still in overbought territory, indicating the possibility of a pullback in price.

Learn more about oil trading opportunities.


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.