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WTI Crude futures are currently trading at $59.09-higher by 1.18% as compared to the previous closing price. The contract price rose today, supported by the prospect of prolonged OPEC-led oil supply cuts though concern that an economic downturn may dent fuel consumption curbed gains.
Brent crude futures were trading at $67.56-higher by 0.76% as compared to the previous closing. It hit its highest level ($68.14) of 2019 in the last week.
OPEC+ Joint Ministerial Monitoring Committee who met in Azerbaijan to discuss oil production earlier today said they planned to exceed their commitments. Saudi Arabia signaled OPEC may need to extend the curbs until the end of the year.
Oil producer group OPEC today also scrapped its planned meeting in April and will decide instead whether to extend output cuts in June, once the market has assessed the impact of U.S. sanctions on Iran and the crisis in Venezuela.
The group is scheduled to meet on June 25-26, to discuss supply policy.
Rising oil output in the U.S has helped to offset the OPEC-led curbs. Data from the EIA showed that U.S. crude oil production increased at the start of 2019 and hit a record 12.1 million bpd in February.
U.S. energy services firm Baker Hughes said in its report on Friday that the U.S. energy firms last week decreased the number of rigs looking for new oil by one to a total of 833.
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 15th March on Tuesday. Previously, the API reported that U.S. crude supplies fell by 2.580 million barrels for the week ended March 8. The EIA will report US crude inventories for the week ended March 15 on Wednesday. Previously, the EIA reported that U.S. crude inventories fell by 3.862 million barrels for the week ended March 8.
On the technical front, the RSI is currently at 67.12% and suggests that the market can move in the upward direction. The current price is above the MA5 (58.51). 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 59.05 Take Profit At 59.65 Stop Loss At 58.75