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WTI Crude futures are currently trading at $61.18-lower by 0.03% as compared to the previous closing price. The contract posted a gain of 0.75% in the last week.
Brent crude futures were trading at $66.20-lower by 0.01% as compared to the previous closing price. The contract surged about 1.4% in the last week.
Crude prices advanced today, supported by a report showing lower U.S. crude stockpiles, by optimism over the U.S.-China trade and the OPEC-led efforts to limit supply.
Trading volumes were low today due to the Christmas holidays.
The U.S. President said on Tuesday that he and his Chinese counterpart would have a signing ceremony for the Phase 1 trade deal that was agreed earlier in December.
The U.S-China trade dispute has weighed on oil prices for most of this year.
Brent crude futures have risen 25% so far this year supported by efforts of the OPEC+ group to cut oil production.
The OPEC+ group agreed earlier in this month to extend production cuts that would take 2.1 million barrels per day off the market. U.S. producers, however, pumping record amounts of oil.
Kuwait and Saudi Arabia agreed this week to end a dispute over their Neutral zone which can supply as much as 500,000 barrels per day.
The U.S. energy services firm Baker Hughes said in its report on Friday (20th December) that the U.S. energy firms last week increased the number of rigs looking for new oil by 18 to 685 for the week ended 20th December. The energy firms added rigs for the second time in nine weeks.
Adding to supply-side data, reports which are published by the API and the EIA every week, the API reported late on Tuesday that U.S. crude supplies dropped by 7.9 million barrels for the week ended December 20. The EIA will report US crude inventories for the week ended December 20 on Friday. Previously, the EIA reported that U.S. crude inventories fell by 1.085 million barrels for the week ended December 13.
On the technical front, the RSI is currently at 66.14% and suggests that the market can move in the downward direction. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 76% and suggest that the market can move in the upward direction.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 61.10 Take Profit At 61.74 Stop Loss At 60.78