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WTI Crude futures are currently trading at $25.32-lower by 1.29% as compared to the previous closing price. The contract was set for a weekly loss of 19.82%.
Brent crude futures were trading at $28.19-higher by 0.35% as compared to the previous closing price. The international benchmark was also on track to lose 16.16% over the week. It will be its fourth straight weekly drop.
Crude prices advanced earlier in the session as many countries poured aid into the global economy to stop a virus-driven recession and the US president signaled he may intervene in the price war between Russia and Saudi Arabia at an appropriate time.
According to market sources, China was set to reveal trillions of Yuan of fiscal stimulus to shore up the economy.
A weaker US dollar and positive risk sentiment are also supporting oil today.
WTI has fallen around 40% in the past two weeks since the breakdown of talks between the OPEC and its allies, leading Saudi Arabia to increase production.
The US President said on the previous day that he might get involved in the price war at an appropriate time. President Trump further said that low gasoline prices were good for US consumers.
The Russian government said earlier today that Moscow and Riyadh have good relations when it comes to crude markets and Russia does not need anyone else to intervene. Crude cut some of its gains after the statement.
The OPEC and its allies have been implementing supply cuts of 1.2 million BPD since January last year.
Goldman Sachs said that supply cut by core OPEC producers could lift Q2 Brent crude prices to $30 a barrel.
U.S. Baker Hughes Oil Rig Count for the current week is scheduled to be released later today at 1 pm ET. The U.S. energy services firm Baker Hughes said in its report on last Friday (13th March) that the U.S. energy firms increased the number of rigs looking for new oil by 1 to 683 for the week ended 13th March.
Adding to supply-side data, reports which are published by the API and the EIA every week, the API reported on Tuesday that U.S. crude supplies dropped by 0.421 million barrels for the week ended March 13. The EIA reported on Wednesday (18th March) that U.S. crude inventories rose by 1.954 million barrels for the week ended March 13.
On the technical front, the RSI is currently at 30.46% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger bands and is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 25.45 Take Profit At 24.55 Stop Loss At 25.90