U.S. API Weekly Crude Oil Stock

U.S. API Crude Oil Stock Vs Crude Oil Traders

Oil traders and market analysts closely watch the API data. They use the data to predict the price of WTI crude oil and other crude products, like Gasoline, etc.

API data tells about the Supply and Demand for crude oil. So, the data makes the Commodity price volatile for a short duration.

U.S. API Crude Oil Stock Vs Day Traders or Swing Traders

Swing traders and long-term traders look at these numbers to decide if it is better to be long or short depending on the increase or decrease in crude oil stock.

After the release of data, the crude oil market is very volatile. So for the day trader, it’s very difficult to trade at that time. If they are able to catch the right direction, they could be able to book a large profit in a matter of minutes. At the same time, if they are not able to catch the right direction it is equally possible that, could they end up with a very big loss in such a short trade.

U.S. API Crude Oil Stock Vs Summer or Winter Season

During the summer season, it is expected that the demand for crude oil is at its peak and if the report is even a marginal less than expected then it is taken as bearish for the crude oil prices.

On the other hand, in Winter Season it is expected that Crude Oil prices form the bottom and if the report is even a marginally more than expected then it is taken as bullish for the crude oil prices.

Crude oil prices usually rise in the summer months (June, July, and August) because of high demand. The Crude market frequently is seen at its peak towards September and October. As it gets colder outside across the United States, oil demand decreases. In the winter months (December, January, February), prices will seem to form the bottom.

Note: This cycle is continuous but is never shown exactly the same movement.

U.S. API Crude Oil Stock Vs OPEC

One can’t trade on the basis of only API data Inventory Data. The basic principle of supply and demand is always a key factor that helps to predict the movement of crude oil prices. You also have to keep a close eye on OPEC Countries. For this reason, many successful oil traders keep a close eye on political issues in OPEC Countries or oil-producing regions.

Conclusion

One major difficulty when analyzing U.S. API Crude Oil data is that supply and demand for Crude oil stock is not the only factor which decides the movement of crude oil price. At the same time, we also have to analyze other factors such as geopolitical tensions, seasonal elements such as winter heat and summer driving, refinery outages, US dollar price, and many other factors.

There are a number of factors you have to analyse while trading in Crude but with a little research or analysis and thorough good preparation, you can get a very good profit from the market.