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WTI Crude futures are currently trading at $60.74-higher by 1.5% as compared to the previous closing. The contract is on track for its largest one-day increase in a month. Crude Prices rose after Saudi Arabia said OPEC and its partners believed demand was softening enough to warrant an output cut of 1 million barrels per day.
Brent crude futures were trading at $71.09-higher by 2.11% at the time of writing.
Saudi’s Energy Minister said today that OPEC and its partners agree that technical analysis shows a need to cut oil supply next year by around 1M bpd from October levels to avoid an unwelcome build-up of unused crude.
Saudi Arabia announced on Sunday that it would cut its shipments by half a million barrels per day in December due to lower seasonal demand.
The OPEC and the IEA release their monthly reports on the outlook for oil supply and demand on Tuesday and Wednesday respectively.
Production from Saudi Arabia, Russia and the US alone has risen by 1.05 million bpd in the last three months, based on official output figures.
In a related report that is published by the API every week, the API is scheduled to report U.S. crude supplies for the week ended 9th Nov. on Wednesday. The API is expected to report a rise of 2.9 million barrels in US crude supplies. Previously, the API reported that U.S. crude supplies rose by 7.83 million barrels for the week ended Nov. 2.
The EIA will report US crude inventories for the week ended 9th Nov. on Thursday. The market expects that the EIA will report a 1.9 M barrel rise in US crude inventories for the week. Previously, the EIA reported that U.S. crude inventories rose by 5.783 million barrels for the week ended Nov. 2.
On the technical front, the RSI is currently at 26.33% and suggests that the market can continue trading sideways. The current Price is below the middle line of the Bollinger bands but is heading upwards. The %K has crossed the %D from below to the upside at around 5.85% and suggests that the market may head upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
Trade Suggestion-Stop Buy At 60.85, Take Profit At 61.55 Stop Loss At 60.50