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WTI Crude futures are currently trading at $53.73-lower by 0.05% as compared to the previous closing price. The contract hit a session high of $55.26 earlier in the day. WTI crude futures last week posted a weekly loss of 1.63%.
Brent crude futures were trading at $58.25-lower by 0.03% as compared to the previous closing price. The contract gained 1.2% last week.
Crude prices dropped today on the outlook for increased supply of Iran’s oil after the French president lifted hopes for a deal between the U.S. and Iran. Although, losses were capped by growing hopes that Washington and Beijing could strike a deal to end their trade dispute.
Oil prices edged lower after the French President said preparations were underway for a meeting between the U.S. President and his Iranian counterpart in the coming weeks to a nuclear standoff.
U.S. President Donald Trump last year abandoned Iran’s 2015 nuclear deal with world powers. President Trump also tightened sanctions on Iran in May to reduce its oil exports.
Supporting prices, the U.S. President said after a G7 summit of world leaders in France that he believed Beijing was sincere about wanting to strike a trade deal.
Meanwhile, crude prices have dropped around 20% from this year’s peak hit in April because of Sino-U.S. trade war that could hurt the global economy and reduce crude demand.
The U.S. energy services firm Baker Hughes said in its report on Friday that the U.S. energy firms last week decreased the most number of rigs in around four months. Baker Hughes said that the U.S. energy firms last week decreased the number of rigs looking for new oil by 16 to 754 for the week ended 23rd August. The oil rig count also declined to its lowest level since January 2018.
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 23rd August on Tuesday. Previously, the API reported that U.S. crude supplies fell by 3.500 million barrels for the week ended 16th August. The EIA will report US crude inventories for the week ended August 23 on Wednesday. Previously, the EIA reported that U.S. crude inventories dropped by 2.700 million barrels for the week ended August 16.
On the technical front, the RSI is currently at 41.99% 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 53.55 Take Profit At 54.25 Stop Loss At 53.20