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WTI Crude futures are currently trading at $33.75-higher by 5.70% as compared to the previous closing price.
Brent crude futures were trading at $36.29-higher by 3.96% as compared to the previous closing price.
Crude prices advanced today despite U.S. crude stockpiles rose much more than expected, with investors also concerned that Beijing’s new Hong Kong security law could result in trade sanctions.
The US EIA said crude stockpiles advanced in the latest week due to a big rise in imports.
Crude prices gained in recent weeks on the expectation of improved demand after the pneumonia-causing virus pandemic reduced global consumption by about 30%.
Uncertainty about Russia’s commitment to continuing deep production cuts also weighed on the market sentiment. According to market sources, Saudi Arabia and some other OPEC oil producers are considering extending record high production cuts until the end of this year but yet have to win support from Russia.
The OPEC+ producer group is scheduled to meet in the next month to discuss continuing the April production deal.
The OPEC and other oil-producing nations agreed to lower supply by 9.7 million barrels per day in April. The deal came into effect from the 1st of May.
Investors are also worried that the US could impose sanctions on China due to its move to impose a new security law on the Asian financial hub.
U.S. Baker Hughes Oil Rig Count for the current week is scheduled to be released tomorrow at 1 pm ET. The U.S. energy services firm Baker Hughes said in its report on last Friday (22nd May) that the U.S. energy firms decreased the number of rigs looking for new oil by 21 to 237 for the week ended 22nd May.
Adding to supply-side data, reports which are published by the API and the EIA every week, the API reported on Wednesday that U.S. crude supplies rose by 8.700 million barrels for the week ended May 22. The EIA reported today that U.S. crude inventories advanced by 7.928 million barrels for the week ended 22nd May.
On the technical front, the RSI is currently at 63.53% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from above to the downside at around 90% and suggests that the market can move in the downward direction.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 33.65 Take Profit At 34.30 Stop Loss At 33.35