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WTI Crude futures are currently trading at $26.74-higher by 8.18% as compared to the previous closing price. The contract was set for a weekly gain of 24.13%. US crude futures rose about 25% on Thursday.
Brent crude futures were trading at $32.55-higher by 9.75% as compared to the previous closing price. The international benchmark was also on track to add 31.33% over the week. The contract climbed as much as 47% on Thursday.
Crude prices rose today on increasing hopes of a new global deal to lower global crude supply.
Crude prices plunged 65% in Q1 on a drop in demand due to the China-linked virus outbreak and steps by Saudi Arabia and Russia to oversupply the market after their failure in March to extend OPEC+ production cuts.
The Azerbaijan energy ministry said that a meeting of the OPEC+ producer group is scheduled for Monday.
The US President said on Thursday that he spoke to his Russian counterpart and Saudi Crown Prince and they had agreed to lower supplies by 10 million to 15 million bpd.
The US President also said he did not make any concessions, such as agreeing to a US production cut. President Trump is due to meet US top oil producer later today.
The IEA head said that even if the OPEC and its allies such as Russia lower production by 10 million barrels per day, global oil stocks would rise by 15 million bpd in Q2.
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 (27th March) that the U.S. energy firms decreased the number of rigs looking for new oil by 40 to 624 for the week ended 27th March.
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 10.485 million barrels for the week ended March 27. The EIA reported on Wednesday (1st April) that U.S. crude inventories advanced by 13.834 million barrels for the week ended March 27.
On the technical front, the RSI is currently at 45.64% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 26.65 Take Profit At 27.45 Stop Loss At 26.25