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WTI Crude futures are currently trading at $54.78- lower by 0.67% as compared to the previous closing price. The contract last week posted a weekly loss of 1.7%.
Brent crude futures were trading at $60.51-lower by 1.05% as compared to the previous closing price. The contract declined by about 2.7% last week.
Crude prices dropped today on global growth worries after the U.S. President threatened China with more tariffs, which could reduce oil demand from the two economic powerhouses.
U.S. crude futures declined nearly 8% on Thursday (1st Aug). It was its biggest fall in more than four years. Crude futures tumbled on Thursday after U.S. President Donald Trump announced that the U.S. will impose 10% tariffs on another $300 billion worth of Chinese imports starting from 1st September.
The U.S. President also said that he could hike tariffs further if China’s President failed to move more quickly towards a trade deal. China on Friday said it would fight against President Trump’s decision.
China today let its currency decline beyond the 7 per dollar level, in a sign that the country may tolerate further weakness because of trade tensions.
U.S. Census Bureau’s data showed on Friday that the country’s crude oil exports rose 260,000 bpd in June to a monthly record of 3.16 million bpd.
The U.S. energy services firm Baker Hughes said in its report on Friday that the U.S. energy firms last week decreased the number of rigs looking for new oil by 6 to 770 for the week ended 2nd August. Energy firms decreased the number of oil rigs for the fifth time in a row.
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 2nd August on Tuesday. Previously, the API reported that U.S. crude supplies dropped by 6.024 million barrels for the week ended July 26. The EIA will report US crude inventories for the week ended August 02 on Wednesday. Previously, the EIA reported that U.S. crude inventories fell by 8.496 million barrels for the week ended July 26.
On the technical front, the RSI is currently at 39.70% and suggests that the market can continue trading sideways. 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 54.90 Take Profit At 54.25 Stop Loss At 55.23