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WTI Crude futures are currently trading at $58.37-lower by 0.98% as compared to the previous closing price. The contract price declined today, with fears of a sharp economic slowdown overshadowing support from tighter supply due to OPEC’s production cuts and U.S. sanctions on Iran and Venezuela.
WTI futures closed down last week after briefly hitting its highest since November 2018.
Brent crude futures were trading at $66.62-lower by 0.44% as compared to the previous closing.
The OPEC+ group have pledged to withhold around 1.2 million barrels per day of crude oil supply this year to prop up markets, with OPEC’s de-facto leader, Saudi Arabia, seen to be pushing for a crude price of over $70 per barrel.
OPEC is scheduled to meet on June 25-26, to discuss supply policy.
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 nine to a total of 824.
Commerzbank said that declines in U.S. crude stocks and expenditure by U.S. shale firms were also providing support to the crude prices.
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 22nd March on Tuesday. Previously, the API reported that U.S. crude supplies fell by 2.133 million barrels for the week ended March 15. The EIA will report US crude inventories for the week ended March 22 on Wednesday. Previously, the EIA reported that U.S. crude inventories fell by 9.589 million barrels for the week ended March 15.
In NYMEX WTI, the number of short positions by hedge funds has fallen to just 51 million barrels, down from 133 million on Jan. 8, according to reports published on Friday(22 March).
On the technical front, the RSI is currently at 55% and.83 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-Stop Sell At 58.32 Take Profit At 57.72 Stop Loss At 58.62