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Crude Oil Inventory data published in USA on every Wednesday is one of the most important data to determine the price volatility in the Crude oil price.
The volatility can lead to spurt in price in both the direction and sometimes the move can be as huge as 3 % to 5% within few hours.
The data is important because it determines the supply-demand gap in the USA, now being the largest consumer of oil - it poses a relevant impact on further crude oil purchase and hence the price.
The data is benchmarked to the expected or the forecasted value
The Trade time sensitivity: As soon as the data is released you will witness large shakeup in price, many times this shake up would bring the price to its origination and from there a fakeout can happen.
What to do :