Fundamental analysis for U.S. Crude Oil Inventories
One of the economic releases of the day was the U.S. Crude Oil Inventories which helps measures the weekly change in the number of barrels of commercial crude oil held by US firms. The way it works is that the amount of inventories helps influence the price petroleum products which can have an encounter with the inflation rates. Traders have got two things which they have to consider and one of them will be to see if increase in crude inventories is more than expected. This will show that the demand is weak which will result in a bearish for crude prices. The other thing that the traders will look will be the opposite which will be to see if a fall in inventories is gonna be less than predicted. So if the if the increase in crude is less than expected this indicates a greater demand which will mean that it will be bullish for crude prices. The economic news about crude oil came out at 15:30 and the previous forecast was -5.117M and the predicted forecast for today was -3.769M. However, as soon as the economic news was reported, it showed that the actual forecast is -6.495M. As it shows on the chart, the candlestick was a bullish candlestick which meant that traders would have gone long on this particular trade.
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