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Crude Oil Inventory and the Importance of Inventory

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Posted by : Nifm
16 September, 2015, 5:36 PM
Crude Oil Inventory and the Importance of Inventory
The Inventory data is released by EIA (Energy Information Administration). Crude oil Inventory is also called Crude oil Stocks, Crude oil Level. Inventory is basically Change in the number of barrels of crude oil held in inventory by commercial firms during the past week. It is Released Every week, 4 days after the week ends. While this is a US indicator, it most affects the loonie due to Canada's sizable energy sector. Crude oil trader should take care before trading on inventory day because It influences the price of petroleum products which affects inflation, but also impacts growth as many industries rely on oil to produce goods.   High Alert: Today is Crude oil inventory due: Forecast 0.7M Actual will come at 8PM.    Comex Crude Oil rose on Wednesday after an unexpected drawdown in U.S. stock and an increase in U.S. gasoline prices, but concerns remained about a global surplus, falling Asian demand and whether the Federal Reserve would raise interest rates. International Indices rose ahead of a U.S. Fed two-day session, In the meeting to decide whether to raise interest rate or not. Higher U.S. interest rates will attract cash from money traders and lifting the dollar. That could be negative for crude oil as it would raise prices for holders of other currencies. The prospect of falling U.S. oil production as prices skim six-year lows has narrowed the gap between benchmark U.S. and Brent crude futures.

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