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WTI Crude futures are currently trading at $19.05-higher by 0.15% as compared to the previous closing price. US crude futures have advanced 25% on Thursday. The contract was set for a weekly gain of 13.64%.
Brent crude futures were trading at $26.12-lower by 2.43% as compared to the previous closing price. The international benchmark was also on track to add 23.04% over the week. Brent crude futures have advanced 12% on Thursday.
Crude prices advanced today as top producers started lowering production to offset a fall in oil demand while data showed US stockpiles grew less than expected.
Brent crude has fallen by about 60% this year as the pandemic weakens demand and the OPEC and other producers pumped at will before reaching a new output cut deal which began today.
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 today.
According to the market sources, in advance of the new supply cut, the OPEC sharply increased production to the highest since March 2019.
The OPEC and its allies in March failed to reach an agreement to cut oil production to support prices.
The OPEC and its allies have been implementing supply cuts of 1.2 million BPD since January last year.
U.S. Baker Hughes Oil Rig Count for the current week is scheduled to be released later today at 1 pm ET. The U.S. energy services firm Baker Hughes said in its report on last Friday (24th April) that the U.S. energy firms decreased the number of rigs looking for new oil by 60 to 378 for the week ended 24th April.
Adding to supply-side data, reports which are published by the API and the EIA every week, the API reported on Tuesday that U.S. crude supplies rose by 10.000 million barrels for the week ended April 24. The EIA reported on Wednesday that U.S. crude inventories advanced by 8.991 million barrels for the week ended 24th April.
On the technical front, the RSI is currently at 47.8% and suggests that the market can continue trading sideways. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 37% and suggests that the market can move in the upward 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 18.80 Take Profit At 19.50 Stop Loss At 18.45