how to Read Crude oil INventory Data

[Stockbapu]

Sharekhan provie the invetory data
every wensday 8.00 pm
how to understand that data how to know the impact on that price

Data of toady 21-09-2016

DOE US Crude oil inventories Exp{+3361} Pre{-559K} Actual{-6200K}
DOE Crushing OK Crude Inventories Exp {+675K} Pre{-1245K} Actual{+526K}
DOE US. Gasonline inventories Exp{-1300} Prev{+567K} Actual{-3204K}
DOE US. Distillate inventory Exp{+38.89K} Prev{4619k} Actual{+2238K}
DOE US. Refinery utilization Exp{-0.71%} Prev{-0.80%} Actual{-0.9%}

please anyone explain how to understand this

 

[Shikamaru]

Previous data was last week actual
For next week, Previous data = -6200K which is today actual
Expected data is given by US inventories authorities
by actual is physical count of various Crude oil inventories in US...

Now, If Actual data > Expected means Supply is high and vise versa
But if you check the correlation of this Supply and Demand with
respect to Crude oil price movement there are no linear relationship
as far as I watched

You can't sure that Oversupply create the complete bear market or
vise versa... Most of the time respect supply and demand....
but volatile is too much to handle since your entry skipped and stop hits
or entry hits and stop skipped due to higher volatility at 8.00 PM

What about trading without Stoploss.... some times Data shows demand
and at 8.00 PM CL may drop 150 points and never turn back....
Even hedging with 50 points on either side won't work sometime since
on some inventory data price spike in both side and eat all entry and
stop loss...

Refer the Natural Gas with respect to CL on Wednesday
and CL with respect to Natural Gas on Thursday.. since
Thursday is data released for Natural Gas

The Energy Information Administration's (EIA) Crude Oil Inventories 
measures the weekly change in the number of barrels of commercial crude oil
 held by US firms. The level of inventories influences the price of petroleum products, 
which can have an impact on inflation. 

If the increase in crude inventories is more than expected, 
it implies weaker demand and is bearish for crude prices.
 The same can be said if a decline in inventories is less than expected. 
If the increase in crude is less than expected, 
it implies greater demand and is bullish for crude prices. 
The same can be said if a decline in inventories is more than expected.

Source: Web