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WTI Crude futures are currently trading at $58.22-higher by 0.16% as compared to the previous closing price. The contract posted a loss of 6.4% in the last week.
Oil prices registered their first weekly loss since late November last week.
Brent crude futures were trading at $64.37-lower by 0.05% as compared to the previous closing price. The contract declined by about 5.3% in the last week.
Crude prices fell today on concerns that the pending initial trade deal between the world’s two largest economies may not lift oil demand as Washington intends to keep tariffs on Beijing goods until a second phase.
The U.S. Treasury Secretary said on Tuesday that Washington would keep in place tariffs on China’s goods until the completion of a second phase of a Sino-U.S. trade agreement.
Officials from both countries are expected to sign the initial trade deal later today. The deal is expected to include a commitment from Beijing to purchase around $200 billion of U.S. goods over two years.
The UAE and Russia said earlier today that they were still committed to meeting in March to decide on future supply policies. This came after news that the OPEC+ have begun consultations on extending the current supply-cut deal until June without holding a meeting in March.
The EIA said on Tuesday that the U.S. oil production is expected to rise by 1.06 million bpd in this year to a record of 13.30 million bpd.
The U.S. energy services firm Baker Hughes said in its report on Friday (10th January) that the U.S. energy firms last week decreased the number of rigs looking for new oil by 11 to 659 for the week ended 10th January.
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 1.100 million barrels for the week ended January 10. Inventory data from the EIA will be released today at 10:30 a.m. ET. The EIA is expected to report a drop of 0.474 million barrels in US crude inventories for the week ended 10th January.
On the technical front, the RSI is currently at 39.14% and suggests that the market can move in the upward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger bands but is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 58.05 Take Profit At 58.65 Stop Loss At 57.75