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EIA crude stock change preview: What to expect in oil?

FXStreet (Córdoba) - Crude oil has extended its advance above $49.00 a barrel on Wednesday, reaching its highest level since July, helped by the American Petroleum Institute weekly inventory report that showed a drop of 1.2 million barrels last week for crude.

EIA data on tap

Ahead, the US Department of Energy will release its own estimates and investors will be looking to confirm API data.

According to the latest report, crude stockpiles rose by 3.955 million barrels for the week ending on Sep 25. For the week ending Oct 2, stockpiles are expected to increase by a slower pace of 2.200 million barrels.

What to expect in oil

A greater than expected increase in crude stocks will likely put pressure on oil prices amid global supply glut concerns, although broad USD weakness could help to contain the pullback. The key level support for crude oil stands around $46.00/bbl, where Oct 5 low and the 21-day SMA converge.

On the opposite scenario, a lower than expected increase in inventories could propel oil prices through the $50.00 level with the $51.30 zone as next target (200-day SMA).

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