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WTI Crude futures are currently trading at $62.20- higher by 0.64% as compared to the previous closing price. The contract touched $60.01- its lowest level since 29th March- earlier in the session.
Brent crude futures were trading at $71.12-higher by 0.49% as compared to the previous closing. The contract touched $68.87- its lowest level since 2nd April- earlier in the session.
Crude prices declined today after the U.S. President said that the current 10% levies on $200 billion worth of Chinese goods will rise to 25% on Friday. President Trump also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.”
A Chinese Foreign Ministry spokesman said earlier today that a Chinese delegation was still preparing to go to the U.S. for trade talks that will begin on Wednesday.
Meanwhile, U.S. sanctions on Venezuela and voluntary cuts led by the OPEC are working to tighten global supply.
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.
U.S. crude inventories rose to their highest since September 2017 and production hit a record 12.3 million barrels per day last week.
The U.S. is now the world’s largest oil producer, ahead of Russia and Saudi Arabia.
The U.S. energy services firm Baker Hughes said in its report on Friday that the U.S. energy firms last week increased the number of rigs looking for new oil by 2 to 807 for the week ended 3rd May.
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 3rd May on Tuesday. Previously, the API reported that U.S. crude supplies rose by 6.810 million barrels for the week ended April 26. The EIA will report US crude inventories for the week ended May 03 on Wednesday. Previously, the EIA reported that U.S. crude inventories rose by 9.934 million barrels for the week ended April 26.
On the technical front, the RSI is currently at 45.28% 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 17% 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 62.10 Take Profit At 62.70 Stop Loss At 61.80