November 29, OctaFX – The price of crude dropped yesterday after the EIA released inventory data. Over the past week, inventories rose to 3.577 million barrels. This was higher than the consensus estimate of 0.769M but lower than last week’s 4.85 million barrels.
The data came a day after the American Petroleum Institute data showed an increase of 3.45 million barrels. These numbers continue to show the amount of crude that American producers are pumping every day.
In the Asian session however, the price moved up a bit as traders wait for the statement by OPEC.
Crude Oil Price Forecast
The price of the XTIUSD pair dropped to an intraday low of 50 after the inventory data yesterday. Overnight, the price moved up a bit as the pair struggled to trade below the 50 barrier.
In the past week, the pair has been consolidating within this level, a sign that sharp movements could happen ahead or before OPEC ministers meet in Vienna. Therefore, while the pair could continue moving lower, traders should be cautious about going short.
This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.