News is the basis of online trading. Whether you are trading Forex, commodities or binary options financial news can be one of the most basic elements of your trading strategies. Today oil is one of the most popular commodities among Forex traders in Singapore. Paying attention on the events going on around oil, may give you great clues on how to trade it. The oil report is published once a week by Energy Information Administration (EIA) and measures the weekly increase in barrels of commercial crude oil available to the US companies, as well as any additional imports. The quantity of crude oil reserves affects the price of oil products and indirectly affects inflation and other economic factors.
This report is published every Wednesday at 15:30 GMT or 10:30 EST. If that Wednesday falls on a public holiday, the report is published the next day on Thursday. The price of crude oil and crude oil futures tend to fluctuate in response to any new information. Such adjustments are made depending on the nature of the information and how the markets react to it. Any unforeseen circumstances that are not expected always cause fluctuations in prices, creating a price shock.
The crude oil reserves report is released together with a report on gasoline reserves. Both the EIA reports show the quantity of petroleum products in the United States, such as crude oil, gasoline, distillates, including jet fuel.
Although crude oil reserves report doesn’t have the highest priority in the charts of Forex traders today, nevertheless it is involved in monitoring of the energy markets. If the results of crude oil reserves in the report are quite different from the expected amount of reserves, the markets may react strongly enough. However, the data in the report may be distorted by various seasonal factors and holidays.
No matter which way the market moves, one thing is clear, oil prices move USD currency in the Forex market. And big changes in the oil market may cause strong movements of USD against other currencies. If you are trading Forex on the news, it is generally recommended to stay away from the market for the first two-three minutes after the publication of the report. As sometimes it takes few minutes for the market to take a direction.