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WTI Crude futures are currently trading at $43.90-lower by 4.52% as compared to the previous closing price. The contract was set for a weekly loss of 0.94%.
US crude futures last week posted its biggest weekly percentage decline since December 2008.
Brent crude futures were trading at $47.90-lower by 4.33% as compared to the previous closing price.
Crude prices fell today on worries that Russia may not agree to a steeper OPEC+ supply cut to support prices and on the spectre of global economic slowdown due to the China-linked virus outbreak.
The OPEC was holding talks with its allies today in Vienna after the group told Russia and others it wanted an additional 1.5 million bpd of supply cuts until the end of this year.
The new deal would mean production cuts by the OPEC+ amounting to a total of 3.6 million barrels per day.
The OPEC ministers said that Non-OPEC members were expected to contribute 500,000 barrels per day to the overall additional cut. Some OPEC+ members had not yet agreed to the extra cut.
Goldman Sachs said that even with the additional cut, the deal will not prevent a global oil market surplus in Q2. The investment bank further said that a rise in demand, not production cuts will be the necessary catalyst for a rebound in oil prices.
The OPEC and its allies have been implementing supply cuts of 1.2 million bpd since January last year.
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 (28th February) that the U.S. energy firms decreased the number of rigs looking for new oil by 1 to 678 for the week ended 28th February.
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 advanced by 1.690 million barrels for the week ended February 28. The EIA reported on Wednesday (4th March) that U.S. crude inventories rose by 0.785 million barrels for the week ended February 28.
On the technical front, the RSI is currently at 27.23% 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 44.00 Take Profit At 43.35 Stop Loss At 44.33