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CFDs and forex (FX) are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX, or any of our other products work and whether you can afford to take the high risk of losing your money.
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Crude oil update before stock report and FOMC

Commodities 5 minutes to read
Picture of Ole Hansen
Ole Hansen

Head of Commodity Strategy

Summary:  Crude oil remains range-bound ahead of the Weekly Petroleum Status report at 14:30 GMT and the FOMC rate decision at 18:00 GMT. This time around, the latter event should prove more critical.

In the below tweet from last week we highlighted the four consecutive sell-offs the weekly stock report had triggered. This was due to the counter-seasonal rise in crude and product stocks.  

However with the Federal Open Market Committee decision potentially being more important the market reaction to the report may end up being fairly muted. The FOMC decision is of a much bigger importance given its impact on the general level of risk appetite.  The recent improvement in global risk sentiment will need a dovish FOMC to be sustained.

The market has during the past month gone from expecting 50 bps cut to 100 bps cut over the next 12 months as US economic data continues to weaken. The result, should the FOMC fail to support this view, could be some painful adjustments across markets with dollar and short-term bond yields rising while stocks could suffer. All of these would be non-supportive for oil.
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