Chicago WTI crude oil futures price is down 0.05% at $112.34 per barrel on mid-Wednesday trades.
Crude oil opened the week on a heavy bullish pressure, gaining around 3.00% on Monday. However, oil reverses its Monday gains by losing approximately 1.5% on Tuesday.
Oil prices edged higher on Wednesday on expectations that the easing COVID-lockdowns in China would push demand higher and as an industry data showed drawdown in U.S. crude oil inventories. China’s authorities have allowed financial institutions to resume work after achieving a milestone of three consecutive days with no new COVID cases outside quarantine zones.
The European Union’s (EU) failure on Monday to persuade Hungary to lifts its veto on a proposed embargo of Russian crude imports could weigh on the future prospect of oil prices, although some diplomats expect agreement on a phased ban at a summit on 30-31 May.
On the technical side, the RSI of 58.06 and is currently trading above all SMAs: MA (5), MA (20), and MA (50). So, BUY position can be generated with the following target and stop-loss:
TRADE SIGNAL: CHICAGO WTI CRUDE OIL FUTURES – BUY: 115, TARGET: 121, AND STOP-LOSS: 110