WTI FALLS ON SINO-U.S. TENSIONS, DEMAND DOUBTS
WTI Crude futures are currently trading at $32.85-lower by 3.04% as compared to the previous closing price. The contract was set for a weekly gain of 11.31%.
Brent crude futures were trading at $34.86-lower by 3.41% as compared to the previous closing price. The international benchmark was also on track to add about 7% over the week.
Crude prices fell today on rising Sino-US tensions and doubts about how quickly oil demand would recover from the pneumonia-causing virus crisis.
Oil prices declined after Beijing said that it would not release an annual growth target for the first time.
A Chinese official said on Thursday that Beijing is set to impose new national security legislation on the Asian financial hub after 2019’s violent pro-democracy unrest that put Hong Kong into deepest turmoil.
Crude prices have plunged more than 40% so far this year. Oil prices, however, are on track for their fourth straight week of gains.
The OPEC and other oil-producing nations agreed to lower supply by 9.7 million barrels per day in April. The deal came into effect from the 1st of May.
U.S. Baker Hughes Oil Rig Count for the current week is scheduled to be released later today at 1 pm ET. The U.S. energy services firm Baker Hughes said in its report on last Friday (15th May) that the U.S. energy firms decreased the number of rigs looking for new oil by 34 to 258 for the week ended 15th May.
Adding to supply-side data, reports which are published by the API and the EIA every week, the API reported on Tuesday that U.S. crude supplies declined by 4.800 million barrels for the week ended May 15. The EIA reported on Wednesday that U.S. crude inventories fell by 4.983 million barrels for the week ended 15th May.
On the technical front, the RSI is currently at 66.7% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from above to the downside at around 96% and suggests that the market can move in the downward direction.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 32.75 Take Profit At 33.40 Stop Loss At 32.45