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WTI Crude futures are currently trading at $52.15-higher by 2.53% as compared to the previous closing. Crude rose today, recovering some of the previous session losses as a modest show of strength in global equities, a slightly weaker dollar and an unplanned supply cut by OPEC member Libya lent support.
Brent crude futures were trading at $60.81-higher by 1.79% at the time of writing. The contract fell nearly 3% on Monday.
Global equities have dropped by more than 5% so far this month, under pressure from concern about the impact of the U.S-China trade tensions on economic growth, and Crude has been caught in the down-draught.
A modest gain for the Crude price came from a shutdown in production in Libya, where the National Oil Company declared force majeure on Monday on exports from the El Sharara oilfield, the country’s biggest, which was captured last week by a militia group.
The OPEC along with non-members such as Russia, last week agreed to cut crude oil output by a joint 1.2 million bpd effective from January to help balance demand and supply.
According to market sources, money managers have cut their bullish holdings of WTI and Brent crude futures and options to the lowest level in three years this month.
In a related report that is published by the API every week, the API is scheduled to report U.S. crude supplies for the week ended 7th Dec. later today. The API is expected to report a rise of 2.1 million barrels in US crude supplies. Previously, the API reported that U.S. crude supplies rose by 5.36 million barrels for the week ended Nov. 30.
The EIA will report US crude inventories for the week ended 7th Dec. on Wednesday. The market expects that the EIA will report a 2.9 M barrel decline in US crude inventories for the week. Previously, the EIA reported that U.S. crude inventories fell by 7.32 million barrels for the week ended November 30.
On the technical front, the RSI is currently at 40.55% and suggests that the market can move in the upward direction. The current Price is below the middle line of the Bollinger bands but is heading upwards. The current price is above the MA5 (51.88). The current price is below the MA20 (52.41).
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 52.05, Take Profit At 52.75 Stop Loss At 51.70