WTI Crude Near 3-Weeks high As Output Reduces – Outlook positive

Oil prices extended gains to hit their highest level in nearly three weeks on Monday, supported by comments from Saudi Arabia that it would continue to curb exports in line with the OPEC-led effort to cut global supplies.

U.S. West Texas Intermediate crude for April delivery was up 20 cents, or 0.3 percent, at $63.75 a barrel by 0342 GMT after rising 3 percent last week. Brent crude gained 12 cents, or 0.2 percent, to $67.43, after climbing nearly 4 percent last week.

“The rise in equities made it easier to buy risk assets such as oil,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo.

“But amid worries over U.S. crude production at near record highs, oil is struggling to make a move.”

Prices were supported after Saudi Arabian oil minister Khalid al-Falih on Saturday said the country’s crude production in January-March would be well below output caps, with exports averaging below 7 million barrels per day (bpd).

U.S. energy companies last week added one oil rig, the fifth weekly increase in a row, bringing the total count up to 799, the highest level since April 2015, Baker Hughes energy services firm said on Friday.

On the technical charts, WTI crude is trading sideways, above all the moving averages (9 day, 20 day, 50 day, 100 day, and 200 day). The RSI is at 56.32 and the MACD is above the signal line.

Trade suggestion:

Buy stop at 63.80, Take profit at 64, Stop loss at 63.55

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