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WTI Crude futures are currently trading at $56.14- lower by 0.08% as compared to the previous closing price. The contract last week posted a weekly loss of about 7%.
Brent crude futures were trading at $62.90-higher by 0.31% as compared to the previous closing price.
Crude prices gained more than 1% earlier in the session on worries that Iran’s capture of Britain’s tanker last week may lead to supply disruptions in the Gulf.
Iran said on Friday that the action was in response to Britain’s capturing of an Iranian tanker earlier in July.
The move has increased concerns of potential supply disruption in the Strait of Hormuz at the mouth of the Gulf.
Crude prices found support from Libya, where on Saturday, the country’s National Oil Corporation closed operations at its largest oil field. The oilfield’s closure has caused an output loss of around 290,000 bpd.
Meanwhile, Shipments of crude oil from Saudi Arabia fell to a 1.5 year low in May, official data showed on Thursday(18th July).
Hedge funds and other money managers increased their combined futures and options positions on U.S. crude for a second week, according to data released on Friday.
Goldman Sachs on Sunday cut its growth forecast in crude oil demand for this year to 1.275 million barrels per day. The investment bank lowered its forecast of growth due to lower-than-expected global economic activity.
The U.S. energy services firm Baker Hughes said in its report on Friday that the U.S. energy firms last week decreased the number of rigs looking for new oil by 5 to 779 for the week ended 19th July. Energy firms decreased the number of oil rigs for the third time in a row.
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 19th July on Tuesday. Previously, the API reported that U.S. crude supplies dropped by 1.401 million barrels for the week ended July 12. The EIA will report US crude inventories for the week ended July 19 on Wednesday. Previously, the EIA reported that U.S. crude inventories fell by 3.116 million barrels for the week ended July 19.
On the technical front, the RSI is currently at 41.94% 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 56.27 Take Profit At 55.67 Stop Loss At 56.57