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WTI Crude futures are currently trading at $21.23-lower by 7.81% as compared to the previous closing price. The contract was set for a weekly loss of 4.64%.
Brent crude futures were trading at $27.19-lower by 7.06% as compared to the previous closing price. The international benchmark was also on track to lose 8.64% over the week. It will be its fifth straight weekly drop.
Crude prices dropped today as demand destruction caused by the China-linked virus outweighed stimulus measures by global policymakers and as the US faced the prospect of becoming the next global epicenter of the pandemic.
US crude futures have fallen about two thirds in 2020 and the flu-like virus-related fall in economic activity and oil demand has forced massive retrenchment in investment by energy firms.
The IEA head said that oil requirements around the world could fall by 20%.
The G20 countries on the previous day pledged to pump more than $5 trillion into the global economy to cap job and income losses from the China-linked virus.
US officials are determined to pass a $2.2 trillion flu-like virus relief bill today or tomorrow to provide help possible as deaths rise.
The OPEC and its allies earlier in March failed to reach an agreement to cut oil production to support prices.
The OPEC and its allies have been implementing supply cuts of 1.2 million BPD since January last year.
As oil demand across the world falls, Saudi Arabia is struggling to find customers for its extra oil.
U.S. Baker Hughes Oil Rig Count for the current week is scheduled to be released later today at 1 pm ET. The U.S. energy services firm Baker Hughes said in its report on last Friday (20th March) that the U.S. energy firms decreased the number of rigs looking for new oil by 19 to 664 for the week ended 20th March.
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 dropped by 1.250 million barrels for the week ended March 20. The EIA reported on Wednesday (25th March) that U.S. crude inventories rose by 1.623 million barrels for the week ended March 20.
On the technical front, the RSI is currently at 29.17% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger bands and 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 21.40 Take Profit At 20.60 Stop Loss At 21.80