Facts to date:
Like the sudden "no cause" growth in mid-March, Friday's black gold collapsed with -3.75% in minutes. The decline was strongest in three years, and hours later Wall Street's commodity analysts said depreciation was the result of growing production in the Peruvian basin that fills the last available storage space. This forces the producers to pay higher prices for storage in alternative tanks, while lowering the cost of the raw material.
What can we expect from API oil stocks and official EIA data tomorrow?
API data we expect later today is indicative, but has a strong impact on black gold. Previous data amounted to +5.321 million barrels, and this is far above the relay average. Due to Easter holidays in the United States last week, API estimates of oil reserves are missing. This accumulates extra tension among commodity traders, and in the minutes after announcing the data, I expect increased volatility and decrease if the current data is close or higher than the previous ones.
Technical View - WTI D1
The upward trend is a fact, but ... Double Top is obvious! With higher stocks this week, the positive picture for oil will change very quickly and a breakthrough in the basic diagonal will be almost certain. If we look at the indicators, they fully confirm the double peak. Sequential counts 3 out of 13 below - the downward impulse is at the beginning. DeMarker points down into an oversupply zone - a probability of a new downward movement.
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