Why does crude oil jump when inventory reports come out?
Oil moved sharply right after a weekly report. What does the market look at?
For education only. This is not financial advice. Trading carries a high risk of loss.
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Weekly US inventory data is usually published on Wednesdays and shows the change in crude stocks. The market trades on the difference between the number and the expectation. A bigger draw than expected points to stronger demand or tighter supply and often lifts the price, while a bigger build can push it down.
Oil also reacts to OPEC decisions, geopolitical news and the dollar. Spreads can widen right at the release, so be careful with tight stops.
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