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WTI Crude futures are currently trading at $56.52-higher by 1.29% as compared to the previous closing price. The contract price rose today, buoyed by OPEC supply cuts and reports that the U.S. and China are inching closer to a deal on a tariff row that has slowed global economic growth.
Brent crude futures were trading at $65.83-higher by 1.38% as compared to the previous closing.
The U.S. and China appear close to a deal that would roll back U.S. tariffs on Chinese goods, as Beijing makes pledges on structural economic changes and eliminates retaliatory tariffs on U.S. goods, according to market sources.
Hopes of an end to the trade dispute between the two countries added support to a market that has been rallying for the past two months on cuts to production.
In the United States, there are signs that the crude oil production boom of the past years, which has seen crude output rise by more than 2 million bpd since early 2018 to more than 12 million bpd, may slow down.
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 843. It was the lowest reading of the oil rig count in almost nine months. The oil rig count fell as some producers follow through on plans to cut spending despite an increase of more than 20% in crude futures so far this year.
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 1st March on Tuesday. Previously, the API reported that U.S. crude supplies fell by 4.200 million barrels for the week ended February 22. The EIA will report US crude inventories for the week ended March 1 on Wednesday. Previously, the EIA reported that U.S. crude inventories fell by 8.647 million barrels for the week ended February 22.
On the technical front, the RSI is currently at 56.73% and suggests that the market can move in the upward direction. The current price is above the MA20. 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 56.45 Take Profit At 57.15 Stop Loss At 56.15