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WTI Crude futures are currently trading at $33.24-higher by 7.82% as compared to the previous closing price. The contract was set for a weekly loss of 19.06%.
WTI last Friday (6th March) posted its largest daily percentage loss since November 2014.
Brent crude futures were trading at $35.06-higher by 7.02% as compared to the previous closing price. The international benchmark was also on track to lose 23% over the week.
Crude prices were on track for their worst weekly decline since 2008 as traders eyed weakening demand from the pneumonia-causing virus pandemic and an increase in production by top producers.
The sentiment was further dampened after the top producers said they will pump more oil into the market.
The UAE and Saudi Arabia offered more oil to customers after the OPEC’s talks with Russia and others on supply cut collapsed last week.
Russia has shown no interest in accepting additional production cuts with the OPEC.
The OPEC and its allies have been implementing supply cuts of 1.2 million bpd since January last year.
Russian crude producers met the country’s Energy Minister on the previous day but did not discuss a return to the deal. The head of Gazprom Neft said it planned to increase production in the next month, after the talks.
Goldman Sachs said it now sees a record high global oil market surplus of 6 million bpd by the next month.
U.S. energy firms are preparing to lower investment and drilling plans amid falling prices.
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 (6th March) that the U.S. energy firms increased the number of rigs looking for new oil by 4 to 682 for the week ended 6th 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 advanced by 6.407 million barrels for the week ended March 6. The EIA reported on Wednesday (11th March) that U.S. crude inventories rose by 7.664 million barrels for the week ended March 6.
On the technical front, the RSI is currently at 32.49% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger bands but 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 32.70 Take Profit At 33.60 Stop Loss At 32.25