API reports deficit, while WTI awaits EIA report – calls updated

Crude oil (WTI) has broken above its triangular consolidation suggesting further rise.

Key factors at play in Crude market 

• Crude oil production is declining for high cost producers, such as shale gas but still not an alarming rate.
• OPEC has suggested sharp drop in non-OPEC supply by 1 million barrels by 2017 to 58.2 million barrels /day.
• Goldman Sachs has recently cut its forecast for WTI to $38/barrel in next one month.
• Almost all investment bank sees price to remain low but rise through next year.
• American Petroleum Institute's (API) weekly report showed inventory decline by 1.2 million barrels.
• However lack of investments in the sector make prices vulnerable to supply shocks in future.

Today's inventory report from US Energy Information Administration (EIA), to be released at 14:30 GMT.

Trade idea 

• WTI has broken above its key triangular congestion, suggesting further rise in prices. Yesterday gained massive to $49/barrel after clearing the falling trend line at $46.5/barrel.
• Two immediate target for WTI stands at $53.6/barrel and $55.6/barrel, while $69/barrel with stop around $37/barrel is a bit longer term. WTI is currently trading at $49.3/barrel.