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WTI Crude futures are currently trading at $56.03- lower by 0.12% as compared to the previous closing price. The contract last week posted a weekly loss of 0.16%.
Brent crude futures were trading at $63.10-lower by 0.11% as compared to the previous closing price. The contract gained about 0.11% last week.
Crude prices dropped today amid pessimism over Sino-U.S. trade talks and the likelihood of slower economic growth globally that could weaken demand for oil.
Better-than-expected U.S. second-quarter economic growth, which was released on Friday, strengthened the outlook for oil consumption.
Top officials from the U.S. and China will meet this week in Shanghai for trade talks. Expectations are, however, low from the meeting after the U.S. President said on Friday that Beijing may not want to sign a trade deal until after the 2020 U.S. presidential election.
Investors are also keeping a close eye on the Federal Reserve meeting this week. The Central bank is expected to cut the benchmark short-term fed funds rate by a quarter-percentage point at its meeting on July 30-31.
Oil prices were still supported by supply concerns as tensions remain high around the Strait of Hormuz.
The U.K. told Iran earlier today that it must follow international rules and release a British-flagged vessel seized earlier this month.
On the other hand, Iran today released new footage of the seizure of the tanker.
Hedge funds and other money managers decreased their combined futures and options positions on U.S. crude in the week to 23rd July, according to data released on Friday.
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 3 to 776 for the week ended 26th July. Energy firms decreased the number of oil rigs for the fourth 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 26th July on Tuesday. Previously, the API reported that U.S. crude supplies fell by 10.961 million barrels for the week ended July 19. The EIA will report US crude inventories for the week ended July 26 on Wednesday. Previously, the EIA reported that U.S. crude inventories dropped by 10.835 million barrels for the week ended July 19.
On the technical front, the RSI is currently at 42.31% 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 56.30 Take Profit At 55.70 Stop Loss At 56.60