WTI Crude futures are currently trading at $56.05-lower by 1.64% as compared to the previous closing. Crude fell on Monday as investors weighed up the effectiveness of a potential cut in supply from OPEC and possibly other exporters in the face of rapidly rising global output.

Brent crude futures were trading at $65.87-lower by 1.62% at the time of writing.

The head of the International Energy Agency said on Monday that oil supply cuts by key producers could have negative implications for markets. He also said that markets were currently well supplied but spare capacity in Saudi Arabia was thin and cuts by key players could tighten markets.

The Organization of the Petroleum Exporting Countries, led by Saudi Arabia, is pushing for the group and its partners to reduce output by 1M to 1.4M barrels per day to prevent a build-up of unused fuel.

Russian Energy Minister Alexander Novak said on Monday that Russia, which is not an OPEC member, planned to sign a partnership agreement with the group, and that details would be discussed at OPEC’s 6th Dec. meeting in Vienna. OPEC ministers meet on Dec. 6 in Vienna to decide on production policy for the next six months amid a growing surplus in world markets.

The US government decision to grant waivers to some of Iran’s oil customers, who faced the prospect of a drop-off in supply from sanctions that came into force in early November, has also helped soothe concerns about the availability of crude.

In a related report that is published by the API every week, the API is scheduled to report U.S. crude supplies for the week ended 16th Nov. on Tuesday. The API is expected to report a rise of 4.8 million barrels in US crude supplies. Previously, the API reported that U.S. crude supplies rose by 8.79 million barrels for the week ended Nov. 9.

The EIA will report US crude inventories for the week ended 16th Nov. on Wednesday. The market expects that the EIA will report a 2.5 M barrel rise in US crude inventories for the week. Previously, the EIA reported that U.S. crude inventories rose by 10.27 million barrels for the week ended Nov. 9.

On the technical front, the RSI is currently at 24.67% and suggests that the market can move in the downward direction. The current Price is below the middle line of the Bollinger bands and is heading 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 56.30, Take Profit At 55.60 Stop Loss At 56.70

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