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WTI Crude futures are currently trading at $23.88-higher by 3.51% as compared to the previous closing price. US crude futures have fallen about 2% on Thursday. The contract was set for a weekly gain of 21.03%.
Brent crude futures were trading at $30.23-higher by 2.82% as compared to the previous closing price. The international benchmark was also on track to add 14.15% over the week. Brent crude futures have declined by about 1% on Thursday.
Crude prices advanced today as more nations moved ahead with plans to ease lockdown measures put in place to halt the pandemic and as more output was shut-in.
Crude prices are on track for their second consecutive week of gains.
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.
North American oil firms are lowering production quicker than the OPEC group. According to market sources, companies are set to withdraw around 1.7 million barrels per day of production by the end of June.
The OPEC and its allies in March failed to reach an agreement to cut oil production to support prices.
The OPEC and its allies have been implementing supply cuts of 1.2 million BPD since January last year.
The market sentiment was also lifted after Beijing and Washington discussed a trade deal reached before the virus outbreak.
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 (1st May) that the U.S. energy firms decreased the number of rigs looking for new oil by 53 to 325 for the week ended 1st 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 8.400 million barrels for the week ended May 1. The EIA reported on Wednesday that U.S. crude inventories advanced by 4.590 million barrels for the week ended 1st May.
On the technical front, the RSI is currently at 54.89% and suggests that the market can continue trading sideways. The current price is above the MA5. The %K has crossed the %D from above to the downside at around 86% and suggests that the market can move in the downward direction.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 23.95 Take Profit At 23.25 Stop Loss At 24.30