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WTI Crude futures are currently trading at $61.77-lower by 1.42% as compared to the previous closing price. The contract touched its highest level ($65.61) since April last year earlier in the session. U.S. crude futures posted a gain of 2.04% in the last week.
Brent crude futures were trading at $67.64-lower by 0.99% as compared to the previous closing price. The contract earlier jumped to $71.25 a barrel, its highest since September 2019.
Crude pared its gains after prices had risen to their highest in months in wake of Iranian missile strikes on bases hosting U.S. troops in Iraq that raised fears of a wider conflict and disruption in oil supplies.
Tehran fired more than a dozen ballistic missiles against multiple bases housing American troops in Iraq at around 5:30 pm ET on Tuesday. Iranian officials, however, said that Tehran did not want a war and its strikes concluded its response to the killing of its top military commander.
The U.S. President said that an assessment of casualties from strikes was underway. President Trump further said that he would give a briefing on the events on Wednesday morning U.S. time.
Goldman Sachs reiterated its three-month view for WTI at $63 per barrel in a research note on Monday.
According to market sources, Saudi Arabia’s state tanker operator Bahri temporarily suspended transits through the Strait of Hormuz.
The UAE energy minister said earlier today that the OPEC will respond to any possible crude oil shortages if needed, but the producer group also has limitations.
The U.S. energy services firm Baker Hughes said in its report on Friday (3rd January) that the U.S. energy firms last week decreased the number of rigs looking for new oil by 7 to 670 for the week ended 3rd 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 fell by 5.945 million barrels for the week ended January 03. Inventory data from the EIA will be released today at 10:30 a.m. ET. The EIA is expected to report a drop of 3.572 million barrels in US crude inventories for the week ended 3rd January.
On the technical front, the RSI is currently at 53.44% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger bands but 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 61.85 Take Profit At 61.15 Stop Loss At 62.20