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WTI Crude futures are currently trading at $58.32- higher by 1.28% as compared to the previous closing price.
Brent crude futures were trading at $65.05-higher by 1.19% as compared to the previous closing price.
Crude prices were almost flat earlier in the session as tensions over Iran’s nuclear program were counterbalanced by worries about global economic growth.
Iran on Monday threatened to restart deactivated centrifuges and step up its enrichment of uranium.
U.S. President Donald Trump on Sunday warned Iran over its nuclear activities.
Meanwhile, the Sino-U.S. trade dispute has reduced prospects for global economic growth and consequently oil demand.
According to market sources, OPEC oil output fell to a new five-year low in June, as a rise in Saudi Supply did not counterbalance losses in Venezuela and Iran due to U.S. sanctions.
Ineos, the British biggest oil pipeline owner, said a day earlier that it had begun to decrease flows on the Forties pipeline system to around 150,000 bpd until Tuesday to repair a processing unit.
Investment bank Goldman Sachs forecasted that growth in U.S. shale production is likely to rise faster than that of global demand at least through the next year.
The U.S. energy services firm Baker Hughes said in its report on last Wednesday that the U.S. energy firms last week decreased the number of rigs looking for new oil by 5 to 788 for the week ended 3rd July. Energy firms decreased the number of oil rigs for the first time in the last three weeks.
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 5th July on Tuesday. Previously, the API reported that U.S. crude supplies dropped by 5.000 million barrels for the week ended June 28. The EIA will report US crude inventories for the week ended July 05 on Wednesday. Previously, the EIA reported that U.S. crude inventories fell by 1.085 million barrels for the week ended July 5.
On the technical front, the RSI is currently at 55.45% and suggests that the market can move in the upward direction. The current price is above the MA5. 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 58.20 Take Profit At 58.90 Stop Loss At 57.90