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WTI Crude futures are currently trading at $39.77- higher by 0.37% as compared to the previous closing price. The contract last week posted a weekly loss of 3.52%.
Brent crude futures were trading at $41.65-lower by 0.57% as compared to the previous closing price. The contract declined by about 1% last week.
Crude prices fell today amid increasing coronavirus cases and a possible return of Libyan oil production.
COVID-19 infections continue to increase in southern and southwestern US states.
Oil demand has recovered from the worst weeks of the outbreak in April and May.
Libya is trying to resume exports, which have been blockaded since the start of the year. The state’s oil company is hoping that talks will put an end to a blockade by eastern-based forces.
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.
Market players are now waiting to see if top producers extend their record supply cut beyond the end of the next month.
According to market sources, OPEC and Russia will likely ease supply cuts from August as global crude demand recovers and prices have bounced back from their lows.
The U.S. energy services firm Baker Hughes said in its report on Friday that the U.S. energy firms last week decreased the number of rigs looking for new oil by 1 to 188 for the week ended 26th June.
Adding to supply-side data, reports which are published by the API and the EIA every week, the API is scheduled to report U.S. crude supplies for the week ended 26th June later today. Previously, the API reported that U.S. crude supplies rose by 1.7 million barrels for the week ended 19th June. The EIA will report US crude inventories for the week ended June 26 on Wednesday. Previously, the EIA reported that U.S. crude inventories rose by 1.442 million barrels for the week ended June 19.
On the technical front, the RSI is currently at 59.76% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 39.66 Take Profit At 40.28 Stop Loss At 39.36