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WTI Crude futures are currently trading at $60.07-higher by 0.38% as compared to the previous closing price. The contract posted a gain of 1.30% in the last week.
Brent crude futures were trading at $65.33-higher by 0.63% as compared to the previous closing price. The contract ended the last week at its highest level since 16th September. Brent crude futures have risen 21% so far this year supported by efforts of the OPEC+ group to cut oil production.
Crude prices advanced today, buoyed by an announcement on Friday that an initial trade deal had been reached between Beijing and Washington.
According to the trade deal, some of the prior duties on $120 billion worth of Chinese imports will be reduced to 7.5% from 15%. Also, additional levies will be halted that are set to take effect over the weekend (15th December). In return, China will buy $40 billion in U.S. agricultural goods, but the amount is below the $50 billion, the White House was reportedly pushing to get.
The U.S. Trade Representative said over the weekend that the phase one trade deal reached on Friday was totally done. The Trade Representative further added that the deal will nearly double Washington’s exports to Beijing over the next two years.
The Chinese State Council’s customs tariff commission also announced over the weekend that it had scrapped additional tariffs on some U.S. goods that were meant to be imposed on Sunday (15th December).
Better-than-expected retail sales and industrial output data from China today also lifted crude prices.
The U.S. energy services firm Baker Hughes said in its report on Friday (13th December) that the U.S. energy firms last week increased the number of rigs looking for new oil by 4 to 667 for the week ended 13th December. The energy firms added rigs for the first time in eight 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 13th December on Tuesday. Previously, the API reported that U.S. crude supplies gained by 1.410 million barrels for the week ended December 06. The EIA will report US crude inventories for the week ended December 13 on Wednesday. Previously, the EIA reported that U.S. crude inventories rose by 0.822 million barrels for the week ended December 06.
On the technical front, the RSI is currently at 66.36% 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 59.98 Take Profit At 60.62 Stop Loss At 59.66