Short term
Trade view / 08 September 2016 at 7:09 GMT

#SaxoStrats. UPDATE 2: WTI shoots up on API surprise

Head of Commodity Strategy / Saxo Bank

This is a second update of our WTI long trade view published on Tuesday.

Oil has raced higher following the surprise announcement from the American Petroleum Institute last night. In their weekly update on US inventories they reported a 12.1 million barrel drop in crude oil inventories. Although most of reduction was driven by lower imports due to loading problems during the tropical storm Hermine last week. 

Additional support has come from China where the August trade data showed oil imports at a four-month high while exports of refined products reached a four-month low.

These developments have seen CLV6 return to the near the high from Monday and at the time of writing this the peak today has been $46.49 just one tick short of our first take profit level at $46.50. Let us go to market on this limit order and maintain the second target at $47.80 while raising the stop to $44.50, just below yesterday’s low. 

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more
08 September
Georgio Stoev Georgio Stoev
In line - we suggested a vertical call spread using the options on the underlying futures
08 September
John Roberti John Roberti
dear ole, the eia figures are difficult to interpret! where disappeared the stock since product supplied and sum up of production less export and plus import do not jibe???
08 September
AlexF AlexF
47.8 PT today ?
08 September
Pandorra Pandorra
Awesome eia report. what it's called 'as expected'.
But still total prod oversupplied, +1.158M as a refinery works well, plus half an ear near the Fx markets floor. it was clear in Draghi speech - EIA report cutaway.
08 September
Ole Hansen Ole Hansen
hi AlexF. Just short by 5 ticks.


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