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WTI Crude futures are currently trading at $63.09- higher by 0.36% as compared to the previous closing price. The contract fell by around 3% in the previous trading session.
Brent crude futures were trading at $71.44-higher by 0.42% as compared to the previous closing.
Crude prices dropped today, extending the Friday decline after U.S. President Donald Trump again pressured the OPEC to raise crude oil production to ease gasoline prices.
President Trump’s remarks triggered a sell-off, putting at least a temporary pause on a 40% price rally since the start of this year.
The rally had gained momentum last week after the U.S. president tightened sanctions against Iran by ending all exemptions previously granted to the major buyers.
U.S. sanctions on Venezuela and voluntary cuts led by the OPEC are also working to tighten global supply as fighting in Libya threatens to curb output there as well.
The cuts have been supported by some non-OPEC producers such as Russia. The markets, however, expected this cooperation may not go beyond OPEC+ group meeting in June. OPEC is scheduled to meet on June 25-26, to discuss supply policy.
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 20 to 805 for the week ended 26th April.
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 April on Tuesday. Previously, the API reported that U.S. crude supplies rose by 6.900 million barrels for the week ended April 19. The EIA will report US crude inventories for the week ended April 26 on Wednesday. Previously, the EIA reported that U.S. crude inventories rose by 5.479 million barrels for the week ended April 19.
On the technical front, the RSI is currently at 49.55% and suggests that the market can continue trading sideways. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 87% and suggests that the market can move in the downward direction.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 63.24 Take Profit At 62.64 Stop Loss At 63.54