21 December 2016
We invite you to look over trading forecast of leading FreshForex analyst Alexander Goryachev about US Energy Information Administration's Crude Oil Inventories report.
Every Wednesday EIA publishes crude oil inventories report.
This Wednesday 21 December at 3.30 p.m GMT the release of negative data and decline of Brent and WTI quotes may be expected for two reasons.
First of all, US dollar is traded at the highest for the recent 13 years, which is negative for oil because oil and dollar have strong negative correlation. OPEC decision to cut oil production does not influence quotes much anymore, so profit-taking on long positions can be expected.
Second of all, Baker Hughes again declared increase in number of US drilling platforms by 12. American oil companies hurry to fully benefit from high oil prices. It is also worth mentioning that number of vertical drilling platforms (which are the most effective in oil extraction) is increasing two weeks in a row. Growing US oil supply is another reason for correction on market.
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