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Crude Oil prices were broadly stable on Wednesday, despite a report on U.S. inventories that showed an unexpected rise in crude stockpiles. The Crude Oil futures were trading almost flat at $40.62 per barrel at the time of writing.
The American Petroleum Institute reported late Tuesday that U.S. crude supplies rose by 2 million barrels for the week ended July 3.
Inventory data from the U.S. Energy Information Administration will be reported on Wednesday at 10:30 a.m. ET. The U.S. Energy Information Administration (EIA) said on Tuesday that U.S. crude oil production is expected to fall by 600,000 barrels per day (bpd) in 2020, a smaller decline than the 670,000 bpd it forecast previously.
In the first week of July, volumes for the Brent global crude benchmark have fallen by a third as traders shun a market that’s been moving sideways for weeks. The number of contracts changing hands has fallen by 32% versus the average in June and is down almost two-thirds from when prices were collapsing in March.
OPEC slashed its crude output in June to a three-decade low, according to an S&P Global Platts survey, as the bloc and its allies, including Russia, continued their campaign to tighten the oil market in its emergence from the depths of the coronavirus crisis.
Key ministers in the OPEC+ are on hold talks next week about the future of their record output cut deal, which is to taper off from next month.
On the technical front, the RSI is trading at 56.32%. The price is trading below the 5days Moving Average and above the 20days Moving Average. The stochastic is forming a downside crossover. Crude Oil is taking support at 40 USD per barrel and is facing resistance at 41.50 USD per barrel on a daily chart.
The Short-term trend is positive and the short-term trades can be executed using following stop loss and profit targets.
TRADE SUGGESTION – CRUDE OIL WTI – BUY AT 40.67, TAKE PROFIT AT 42 AND STOP AT 40