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WTI Crude futures are currently trading at $44.56-lower by 2.64% as compared to the previous closing. Crude prices dropped today, under pressure from the rising output in major OPEC and non-OPEC producers and due to worries about an economic slowdown that could weaken demand.
Data released on Wednesday indicated that Russian production hit a post-Soviet record in 2018. Earlier this week, official data reported that U.S. output reached a record in October.
Brent crude futures were trading at $53.23-lower by 1.73% as compared to the previous closing. On 26th of December, the contract hit its lowest ($49.93) since July 2017.
Crude prices dropped in 2018 for the first year since 2015 after investors fled the market in the fourth quarter over growing concerns about excess supply and the economic slowdown.
Surging shale output has helped make the US- the world’s largest oil producer, ahead of Saudi Arabia and Russia.
Adding to worries about a slowing global economy, a series of PMIs for December released earlier today, mostly indicated slowing manufacturing activity across Asia, the main growth region for Crude Oil demand.
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 28th Dec. on Thursday. Previously, the API reported that U.S. crude supplies rose by 6.92 million barrels for the week ended Dec. 21. The EIA will report US crude inventories for the week ended 28th Dec. on Friday. Previously, the EIA reported that U.S. crude inventories fell by 0.046 million barrels for the week ended December 21.
On the technical front, the RSI is currently at 36.81% and suggests that the market can move in the downward direction. The current price is below the MA5 (45.24). 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 44.76 Take Profit At 44.06 Stop Loss At 45.11