WTI Crude is currently trading at $72.24-higher by 0.027% as compared to the last closing. Crude prices are currently trading close to their highest since mid-July this year. The commodity is gaining momentum since the last two trading sessions. Crude rose today supported by the imminent U.S. sanctions on Iranian crude exports. In addition, the reluctance of OPEC and Russia to raise output to offset the potential hit to global supply also catapulted the commodity.

Brent crude futures were trading at $81.32-higher by about 0.78% at the time of writing. The contract touched a session peak of $82.20- the highest since November 2014 on Tuesday.

The U.S. will target Iran’s oil exports with sanctions from Nov. 4, with Washington applying pressure on governments and companies around the world to fall into line and cut their purchases. Energy trader Vitol stated on Tuesday that it will stop doing business with Iran after the U.S re-imposed sanctions on Tehran’s oil trade from Nov. 4.

Mohammad Barkindo, secretary general of the OPEC, said on Tuesday that it is important for OPEC and its partners, including Russia, to cooperate to ensure they do not “fall from one crisis to another”.

The IEA has forecast strong oil demand growth of 1.4M bpd this year and 1.5M bpd in 2019 in its most recent reports and also added that the market was tightening.

The API is scheduled to report U.S. crude supplies for the week ended Sept. 21 late on Tuesday. The API is expected to report a drop of 0.09 million barrels in US crude inventories. U.S. crude supplies added 1.25 million barrels for the week ended Sept. 14.

On the technical front, the RSI is currently at 65.21% and suggests that the market can move in the upward direction. The %K has crossed the % D from below to the upside at 31.95%, 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 71.75, Take Profit At 72.75 Stop Loss At 71.25

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