WTI GAINS AS NEW SAUDI MINISTER COMMITS TO PRODUCTION CUTS
WTI Crude futures are currently trading at $57.21-higher by 1.29% as compared to the previous closing price. The contract last week posted a weekly gain of 2.6%.
Brent crude futures were trading at $62.01-higher by 0.60% as compared to the previous closing price. The contract advanced 1.8% last week.
Crude prices advanced today after the new Saudi Arabian energy minister confirmed expectations that there would be no radical change in his country’s oil policy.
The new Saudi Arabian Minister said earlier today that the pillars of Saudi policy would not change and a global deal to cut crude production by 1.2 million barrels per day would survive.
According to market sources, the OPEC oil output surged in the last month, rising for the first month in 2019. The output rose as higher supply from Nigeria and Iraq offset restraint by Saudi Arabia and losses caused by U.S. sanctions on Iran.
The OPEC+ deal’s joint ministerial monitoring committee is scheduled to meet on 12th of September in Abu Dhabi.
Crude prices today were also propped up by an increase in oil imports in China in August. Shipments to the country rose 3% from July and about 10% higher in the first eight months of this year as compared to a year earlier.
S&P Global Platts said it would launch new price assessments for U.S. crude oil for Asian buyers from 1st of October.
The U.S. energy services firm Baker Hughes said in its report on Friday that the U.S. energy firms last week decreased the number of rigs looking for new oil by 4 to 738 for the week ended 6th September. The oil rig count dropped for the third straight week.
Adding to supply-side data, reports which are published by the API and the EIA every week, the API is scheduled to report U.S. crude supplies for the week ended 6th September on Tuesday. Previously, the API reported that U.S. crude supplies dropped by 0.401 million barrels for the week ended August 30. The EIA will report US crude inventories for the week ended September 06 on Wednesday. Previously, the EIA reported that U.S. crude inventories fell by 4.771 million barrels for the week ended August 30.
On the technical front, the RSI is currently at 58.70% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Buy At 57.05 Take Profit At 57.75 Stop Loss At 56.70