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WTI Crude futures are currently trading at $57.82-lower by 0.90% as compared to the previous closing price. The contract posted a gain of 6.28% in the last week. It was its biggest gain since June.
Brent crude futures were trading at $64.13-lower by 0.74% as compared to the previous closing price. The contract surged about 6.7% last week. It was its biggest gain since January. The international benchmark has gained around 18% this year supported by a supply-cut agreement led by the OPEC.
Crude prices reversed an earlier gain today, pressured by the prospect of a faster-than-expected full restoration of Saudi crude output and also due to weaker-than-expected European economic data.
According to market sources, Saudi Arabia had restored about 75% of oil production lost.
A survey released earlier today showed that eurozone business growth stalled in September weighed on oil markets.
Middle East tensions have increased since the Saudi Attack on 14th September. The Pentagon has said that additional U.S. troops will be deployed in the Gulf region to support Saud Arabia’s missile and air defenses.
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 14 to 719 for the week ended 20th September. The oil rig count dropped for the fifth straight week. It was also the lowest reading since May 2017.
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 20th September on Tuesday. Previously, the API reported that U.S. crude supplies gained by 0.592 million barrels for the week ended September 13. The EIA will report US crude inventories for the week ended September 20 on Wednesday. Previously, the EIA reported that U.S. crude inventories rose by 1.058 million barrels for the week ended September 13.
On the technical front, the RSI is currently at 53.39% 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 57.96 Take Profit At 57. 28 Stop Loss At 58.30