How to Trade Crude Oil on Inventory Report?                                                                                                                                     mcx-crude-inventory

MCX Crude Oil Trading on Inventory Day. Trading Crude oil Inventories for Sure profit based on Inventory Report. Learn, How to Trade Crude Oil on Inventory Data on Wednesday.

*Disclosure: All information is based on personal experience and knowledge of the author.  We do not Guarantee any profit/loss. Trading Commodities is Subject of Risk.

Pre Requirement: This article is about “Crude oil Trading on Inventory Day“, Before this you should read another article about, “MCX Crude Oil Trading Strategy for Normal Days“

Inventory Report: EIA (U.S Energy Information Administration) provides Stock/Storage Report of Crude Oil every week, which is known as Inventory Report.

Inventory Report Time: 8:00 PM

Inventory Report Day: Wednesday

But if there is any Holiday than Inventory may be released on next day.  From EIA website, you can find exact dates of Inventory. Check Here, “Crude Oil Inventory Dates.”

This strategy can help to Earn Big Profits in MCX Crude Oil.

Inventory Reports:

Only Focus Actual and Previous Inventory Status.

Actual: Current Inventory Report.

Previous: Previous Inventory Report.

Here are some Inventory Reports:

Date Actual Forecast Previous
April 15, 2015 1.3M 3.5M 10.9M
April 8, 2015 10.9M 3.3M 4.8M
April 1, 2015 4.8M 4.2M 8.2M

How to Trade Crude Oil on Inventory Report?

Step:1 Time of Trading: (8:15 pm)

As Inventory Report is released at 8:00, Many Risky traders trade at 7:58 or 7:59, means before 2-3 minute of inventory release. You can Earn Very Big profit if trading near 8:00 clock Because Very FAST movement will be there. But You can also LOSS big Capital. So trading in Crude oil before 8:00 pm on Inventory day is very risky.

For Safe Trading, We suggest to Trade at 8:15 pm or between 8:15 to 8:20

Step:2 Stop Loss and Target:

Stop Loss: On Inventory day, Keep Cost-2 cost or Max 5 point SL when Crude Move 15-25 point in Profit.

Else wait for 25 Minutes, If still in Loss than EXIT. But always take “Buy/Sell Decision” based on below mentioned factors. (Step:3)

Target: Continue Trade Till 10:50 pm, If there is very little difference between “Actual” and “Previous” Inventory than book profit as per your own decision.

Step:3 BUY/SELL Decision:

You can take Buy/Sell decision based on two things, (1) Inventory Data, (2) Total Buyers/Sellers.

Buy Crude, if “Actual Data” is Lower than “Previous Data”. Or

If Total Buyers are Higher ( Above 1500 point Difference).

Sell Crude, if “Actual Data” is Higher than “Previous Data”. Or

If Total Sellers are Higher (Above 1500 point Difference).

Example:1 Crude oil Trading on Inventory Report, Date: April 01,2015

Date Actual Forecast Previous
April 01, 2015 4.8M 4.2M 8.2M

As per Inventory report, ‘Actual Data is: 4.8M’, and ‘Previous was 8.2M’.

It means Actual data is Lower  than Previous data, So if Production is low than Prices will go UP Because if supply is low and demand is high than prices will be increased.

If Actual is Lower compare to Previous than BUY Crude. (click on image to view in Large Size)






Example:2 Crude oil Trading on Inventory Report, Date: April 08,2015

Date Actual Forecast Previous
April 08, 2015 10.9M 3.3M 4.8M

As per Inventory report, ‘Actual Data is: 10.9M’, and ‘Previous was 4.8M’.

Actual Data is Higher than Previous. It means Storage/Production is Higher than Previous. It means Production/Storage is higher than demand,

If Actual is Higher compare to Previous than SELL Crude. 






Example:3 Crude oil Trading on Inventory Report, Date: April 15,2015

Date Actual Forecast Previous
April 08, 2015 1.3M 3.5M 10.9M

As per Inventory report, ‘Actual Data is: 1.3M’, and ‘Previous was 10.9M’.

Actual Data is Very Lower than Previous. It means Prices will go UP.

If Actual is Lower compare to Previous than BUY Crude. 





Through these examples, I have tried to answer the question, How to Trade Crude Oil on Inventory Report?

This is the trading strategy based on eia report.

This Article needs to be updated/edited in future, so keep Reading…..

How to Decide Target and Stop loss in Crude Oil

How to Decide Target and Stop loss in Crude Oil?

How to Decide Target and Stop loss in Crude Oil? Calculate Target and SL in Crude Oil. How many points Intraday Target & Stop Loss in MCX Crude. Calculating Target and Stop Loss for Inventory Day.

Many times traders are using First Target, Second Target etc. In this article, I will share my own experience and knowledge about “How to Decide Target and Stop loss in Crude Oil?

This article is about Intraday Target booking and deciding Stop Loss point.

Disclaimer: All the information is based on author’s own knowledge.Use your own mind to take any decision.We will not be responsible for any loss.

How to decide Target and Stop Loss in Crude Oil?


First important thing is how many lots you trade?
I suggest to trade maximum 1 Mini lot per 15k capital (If 50,000 Capital than 3 Mini Lot). You can stop reading this article if trading risky, like trading 1 Mega lot with 30k capital.

I don’t prefer profit booking based on Target 1, Target 2 or Target 3 basis. Let’s decide Target and Stop Loss

To minimize the risk, it’s very important to trail the Stop loss and do profit booking. But also focus time segment.

Divide your lots/quantity 50:50 and do partial profit booking in 50% lots and for remaining trail SL point.

Below are some suggestions about “How to Decide Target and Stop loss in Crude Oil?

  1. If  you have done any trade between 10:00 – 5:00 pm than exit it before 6 o clock or Exit if profit is approx 40 points.
  2. If trade executed near 6 o’Clock than book profit near 6:50 and keep Cost to Cost SL in remaining quantity.
    But at 7 o clock if Buyer/Sellers Difference is not more than 500 point than Exit.
  3. If you have traded Crude after 7 o clock than book partial profit near 7:50 and keep Cost to Cost SL. Because at 8 o clock it may reverse.
  4. If trade executed after 8 o clock than book partial profit at 9 o clock and continue remaining position till 11:00 clock (if buyers/sellers difference is above 1,000 points). Else keep Trailing SL. Trail SL to 20 points on every 30-40 points movement.
  5. If trade executed after Inventory Report (8 o clock in summer & 9 o clock in winter) than Continue the trade till market closing.
    But keep it Cost to Cost (when it gives 30-40 point profit).

On Inventory Day never trade for small profit like 20-30 points.

Still confused? Would you like to discuss about profit booking and calculation of Target and Stop Loss point for MCX Crude Oil?