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WTI Crude futures are currently trading at $55.18-lower by 0.50% as compared to the previous closing price. The contract posted a gain of 5.37% in the last week.
Brent crude futures were trading at $60.98-lower by 0.29% as compared to the previous closing price.
Crude prices dropped today as concerns about a possible delay in resolving the Sino-U.S. trade dispute, which has weakened demand for oil, competed with a price-supporting fall in U.S. crude stockpiles.
According to market sources, an interim trade agreement between the U.S. and China may not be completed in time for officials from both sides to sign it in November.
The Federal Reserve is set to announce its monetary policy decision today at 2 p.m. ET. The central bank is expected to cut the benchmark short-term fed funds rate by a quarter-point. It would be the third interest-rate cut of 2019. A rate cut would help support crude prices.
The OPEC+ group agreed in December last year to cut supply by 1.2 million bpd from the start of 2019.
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 17 to 696 for the week ended 25th October.
Adding to supply-side data, reports which are published by the API and the EIA every week, the API reported on Tuesday that U.S. crude supplies rose by 0.592 million barrels for the week ended 25th October. Previously, the API reported that U.S. crude supplies advanced by 4.450 million barrels for the week ended October 18. The EIA will report US crude inventories for the week ended October 25 later today. Previously, the EIA reported that U.S. crude inventories fell by 1.699 million barrels for the week ended October 18.
On the technical front, the RSI is currently at 52.24% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger bands but is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 55.28 Take Profit At 54.58 Stop Loss At 55.63