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WTI Crude futures are currently trading at $29.48-higher by 6.70% as compared to the previous closing price. US crude futures have risen 9% on Thursday. The contract was set for a weekly gain of 18.07%. WTI crude futures hit its highest level ($29.52) since early April earlier in the session.
Brent crude futures were trading at $32.41-higher by 2.82% as compared to the previous closing price. The international benchmark was also on track to add 3.87% over the week. Brent crude futures have jumped about 7% on Thursday.
Crude prices advanced today amid signs demand for fuel was picking up, with China reporting increased refinery runs.
Crude prices are on track for their third straight week of gains.
Data released earlier today showed that China’s daily oil use rebounded in the last month as refineries increased operations.
The International Energy Agency expects global crude stockpiles to drop by about 5.5 million bpd in the second half of 2020. The IEA also sees crude demand in 2020 to drop by 8.6 million barrels per day.
Barclays hiked its forecast for US crude futures by $5-$6 a barrel for this year. The investment bank also raised its forecast for WTI by $16 per barrel for the next year. Barclays sees US crude prices to average $50 a barrel in the next year.
The OPEC and other oil-producing nations agreed to lower supply by 9.7 million barrels per day in April. The deal came into effect from the 1st of May.
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 (8th May) that the U.S. energy firms decreased the number of rigs looking for new oil by 34 to 258 for the week ended 8th May.
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 rose by 7.580 million barrels for the week ended May 8. The EIA reported on Wednesday that U.S. crude inventories declined by 0.745 million barrels for the week ended 8th May.
On the technical front, the RSI is currently at 64.44% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 86% and suggests 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 29.30 Take Profit At 30.00 Stop Loss At 29.00