CRUDE CRASHES BELOW MA50 ON SAUDI STATEMENT
WTI Crude futures are currently trading at $67.40-lower by 3.02% as compared to the previous closing. Oil prices dropped on Tuesday after Saudi Arabia said it could supply more crude quickly if needed, reassuring investors ahead of U.S. sanctions on Iran’s crude exports that start next month.
Brent crude futures were trading at $77.72-lower by about 2.7% at the time of writing. The benchmark was trading at it lowest level since 18th sept and beneath its MA50 for the first time in two months.
Saudi Energy Minister Khalid al-Falih said at a conference in Riyadh today that the oil market was in a “good place” and he hoped oil producers would sign a deal in December to extend cooperation to monitor and stabilize the market. The Energy minister also said that Saudi Arabia would produce between 1 and 2 million barrels per day more than current levels in the future.
The chief executive of Saudi Aramco said that it would take the kingdom only three months to reach its maximum production capacity of 12 million bpd if needed.
South Korea’s crude imports from Iran fell to zero in September, data from state-run Korea National Oil Corp showed on Tuesday.
In a related report that is published by API every week, the API is scheduled to report U.S. crude supplies for the week ended 19th October, today at 4:30 pm ET. The API is expected to report a rise of 2.3 million barrels in US crude supplies. Previously, the API reported that U.S. crude supplies fell by 2.1 million barrels for the week ended Oct. 12.
The EIA will report US crude inventories for the week ended 19th October on Wednesday. The market expects that the EIA will report 3.550 M barrels rise in US crude inventories for the week.
On the technical front, the RSI is currently at 32.13% and suggests that the market can move in the downward direction. The %K has crossed the % D from above to the downside at 10.25%, and this suggests that the market may head downwards. The current price is below the MA5.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 67.80, Take Profit At 67.00 Stop Loss At 68.20