Stronger than expected Industrial Production along with recent solid Inventory data has pushed oil prices above the current breakout range. Additionally, Canada’s Enbridge Inc. said it agreed to buy a 50% stake in a pipeline currently moving oil from the Gulf Coast to Oklahoma, and then reverse the flow a move that could ease a bottleneck of crude in the Midwest. The move could ease a growing glut of crude in the Midwest, which has depressed prices in particular for Canadian oil-sands producers.
U.S. commercial crude oil inventories decreased by 1.1 million barrels from the previous week according to the Department of Energy. At 337.0 million barrels, U.S. crude oil inventories are in the upper limit of the average range for this time of year. Distillate fuel inventories decreased by 2.1 million barrels last week and are in the lower limit of the average range for this time of year. The low level of Distillates fuels are likely to drive oil prices higher.
Crude oil has broken out above resistance near 100.62. A close above this level is likely to lead to a test of $103.40.
The trade – Purchase a daily binary option call on crude oil on a daily close above 100.65, with a cap at $102.50.
Summary:
Asset : WTI crude oil
The trade : Binary Call Option
Expiry time : End of day
When : purchase a daily binary option call on a daily close above 100.65, with a cap at $102.50.
Result : This signal expired out of the money
