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WTI Crude futures are currently trading at $56.31-lower by 1.53% as compared to the previous closing price. The contract price fell on Monday, reversing earlier gains after U.S. President Donald Trump told OPEC producers to “relax” as prices were too high.
Brent crude futures were trading at $65.90-lower by 1.62% as compared to the previous closing.
Members of the OPEC along with non-OPEC producers such as Russia have agreed to cut oil production by 1.2 million barrels per day this year to help balance the market and support prices.
The crude price has advanced by around 20% this year, helped primarily by OPEC’s production cuts, as well as U.S. sanctions on exports of crude from Iran and Venezuela.
President Trump has frequently blamed high oil prices on OPEC while the U.S. has become the world’s largest supplier due to shale output.
The President’s comment came a day after he said that there could be “very big news over the next week or two” in trade talks between the U.S. and China. Concerns of global trade wars weighed on crude prices earlier this year.
Energy services firm Baker Hughes said in its weekly report on Friday that the U.S. energy firms last week decreased the number of rigs looking for new oil to a total of 853.
Adding to supply-side data, reports which are published by the API and the EIA every week, the API is scheduled to report U.S. crude supplies for the week ended 22nd February on Tuesday. Previously, the API reported that U.S. crude supplies rose by 1.260 million barrels for the week ended February 15. The EIA will report US crude inventories for the week ended Feb 22 on Wednesday. Previously, the EIA reported that U.S. crude inventories rose by 3.672 million barrels for the week ended February 15.
On the technical front, the RSI is currently at 59.56% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger Bands but is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 56.45 Take Profit At 55.75 Stop Loss At 56.75