WTI INCHES DOWN ON CONCERNS OVER TRADE WAR AND SUPPLY RISKS
WTI Crude futures are currently trading at $58.79- lower by 0.74% as compared to the previous closing price. The contract last week notched a decline of 6.38%, its steepest since December.
Brent crude futures were trading at $68.43-higher by 2.08% as compared to the previous closing.
Crude prices were mixed today on concerns over tighter global supplies and worries that demand will be hurt by the continuing Sino-U.S. trade tensions.
The producer group OPEC+ has been cutting supply since the start of the year to tighten the market. U.S. sanctions on Iran and Venezuela have curbed their crude exports, reducing supplies further.
Meanwhile, the OPEC and its allies will meet on June 25-26 in Vienna, to discuss supply policy
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 5 to 797 for the week ended 24th May. It was the fifth time in the last six weeks that companies have reduced the number of oil rigs.
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 24th May on Wednesday. Previously, the API reported that U.S. crude supplies rose by 2.400 million barrels for the week ended May 17. The EIA will report US crude inventories for the week ended May 24 on Thursday. Previously, the EIA reported that U.S. crude inventories rose by 4.740 million barrels for the week ended May 17.
On the technical front, the RSI is currently at 36.29% and suggests that the market can continue trading sideways. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 22% and suggests that the market can move in the upward 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 58.70 Take Profit At 59.30 Stop Loss At 58.40