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WTI Crude futures are currently trading at $59.36- higher by 2.47% as compared to the previous closing price. The contract touched its highest level in about five weeks at $60.24 earlier in the session.
Brent crude futures were trading at $65.68-higher by 2.30% as compared to the previous closing.
Crude prices jumped about 2% today, with the OPEC+ group on track to extend supply cuts until at least the end of this year at their meeting in Vienna this week.
Iran and Venezuela today joined top oil producers Saudi Arabia, Russia, and Iraq in supporting a policy aimed at bolstering up the price of crude oil. Also, the Russian President said on Saturday that Russia and Saudi Arabia have agreed to extend existing output cuts of 1.2 million bpd by another six to nine months.
The producer group OPEC+ has been cutting supply since the start of the year to tighten the market. The OPEC and its allies, meet on Monday and Tuesday in Vienna to discuss supply policy. The markets are expecting that the producer group may extend the supply cuts deal in its meeting.
Crude prices have come under renewed pressure in the last few months from increasing U.S. supplies and a slowing global economy. The EIA said on Friday that U.S. crude output in April jumped to a fresh monthly record of 12.16 million bpd.
The U.S. energy services firm Baker Hughes said in its report on Friday that the U.S. energy firms last week increased the number of rigs looking for new oil by 4 to 793 for the week ended 28th June.
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 28th June on Tuesday. Previously, the API reported that U.S. crude supplies dropped by 7.550 million barrels for the week ended June 21. The EIA will report US crude inventories for the week ended June 28 on Wednesday. Previously, the EIA reported that U.S. crude inventories fell by 12.788 million barrels for the week ended June 21.
On the technical front, the RSI is currently at 60.13% and suggests that the market can move in the downward direction. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 88% 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 59.28 Take Profit At 59.97 Stop Loss At 58.98