CRUDE BULLISH ON SAUDI ENCOURAGEMENT AHEAD OF PRODUCER MEET
WTI Crude is currently trading at $69.42-higher by 1.03% from the last closing. Crude prices firmed on Tuesday on signs that OPEC would not be prepared to raise output to address shrinking supplies from Iran, and as Saudi Arabia signaled it was in no rush to bring prices down.
Brent crude futures were trading at $78.82-higher by about 1.10% at the time of writing.
Ministers from OPEC and non-OPEC producers will meet on Sunday to discuss compliance with output policies. According to market sources, no immediate action was planned and producers would discuss how to share a previously agreed output increase
Bloomberg reported on Tuesday, that the Saudi government was currently comfortable with prices above $80 per barrel, at least for the short term. U.S. sanctions affecting Iran’s petroleum sector are due to come into force from Nov. 4.
Crude oil cut its earlier gains for the session after China announced retaliatory tariffs on US imports. The longer-term outlook remains weighed down by an escalation in the China-U.S. trade war that has clouded the outlook for crude demand. The tariffs are likely to limit economic activity in both China and the United States, potentially hitting growth in demand for oil as less fuel is consumed to move goods for trade.
The API is scheduled to report U.S. crude supplies for the week ended Sept. 14 late on Tuesday. The API is expected to report a drop of 0.92 million barrels in total US crude inventories. Further, U.S. crude supplies dropped by 8.6 million barrels for the week ended Sept. 7.
The U.S. Energy Information Administration will release its weekly report on Wednesday. The EIA is expected to report a fall of 2.39 million barrels in total US crude inventories for the week ended 14th September. Further, EIA reported a decline of 5.29 million barrels in crude inventories in the previous week.
On the technical front, the RSI is currently at 55.04% and suggests that the market can move in the upward direction. The %K has crossed the % D from below to the upside at 45.85%, and this suggests that the market may head upwards. The current price is above the MA5.So, overall the market setup seems to be positive.
Trade Suggestion-Limit Buy At 69.20, Take Profit At 69.90 Stop Loss At 68.85