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WTI Crude futures are currently trading at $38.11-higher by 0.63% as compared to the previous closing price.
Brent crude futures were trading at $40.72-higher by 0.12% as compared to the previous closing price.
Both contracts touched their three-month highs last week.
Crude prices dropped today as market players were concerned about oil demand due to fresh outbreaks of coronavirus. Losses were, however, limited after US oil production fell sharply.
US crude production dropped last week to 10.5 million bpd, lowest since March 2018 due to Storm Cristobal.
The WHO said it was moving to update its guidelines after results indicated the corticosteroid medication dexamethasone lowered death rates by about a third.
Many flights were canceled and schools were closed in the Chinese capital to head off a new COVID-19 outbreak in the city.
Weak economic activity is still hurting crude demand.
The Energy Information Administration said that US oil demand is down 20% over the last four weeks, compared with the year-ago period.
The OPEC and other oil-producing nations agreed to lower supply by 9.7 million barrels per day in April. The deal came into effect from the 1st of May.
The OPEC and its allies earlier this month agreed to extend the record production cut until the end of next month.
U.S. Baker Hughes Oil Rig Count for the current week is scheduled to be released on Friday at 1 pm ET. The U.S. energy services firm Baker Hughes said in its report on Friday (12th June) that the U.S. energy firms decreased the number of rigs looking for new oil by 7 to 199 for the week ended 12th June.
Adding to supply-side data, reports which are published by the API and the EIA every week, the API reported on Tuesday that U.S. crude supplies rose by 3.900 million barrels for the week ended June 12. The EIA reported today that U.S. crude inventories advanced by 1.215 million barrels for the week ended 12th June.
On the technical front, the RSI is currently at 61.03% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 45% and suggests that the market can move in the upward direction.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 38.05 Take Profit At 38.67 Stop Loss At 37.75