WTI INCHES DOWN ON DEMAND CONCERNS
WTI Crude futures are currently trading at $57.47- lower by 0.26% as compared to the previous closing price.
Brent crude futures were trading at $64.85-lower by 0.75% as compared to the previous closing.
Crude prices rose earlier today adding to gains from the last week due to escalating tensions between the U.S. and Iran, but fears about the possibility of weakening demand capped the gains.
WTI soared 10% last week and posted the largest weekly percentage gain since December 2016. Crude prices surged after Iran had shot down an unmanned U.S. surveillance drone over the Strait of Hormuz on Thursday (20th June).
U.S. President Donald Trump said that Washington would step up its sanctions on Tehran.
The producer group OPEC+ has been cutting supply since the start of the year to tighten the market. The OPEC and its allies will meet on July 1-2 in Vienna, to discuss supply policy. The markets are expecting that the producer group may extend the supply cuts deal in its July meeting.
Russia’s Energy Minister said earlier today that international cooperation on crude oil production had helped stabilize oil markets and was more important than ever.
The U.S. energy services firm Baker Hughes said in its report on Friday that the U.S. energy firms last week increased the number of rigs looking for new oil by 1 to 789 for the week ended 21st June. Energy firms increased the number of oil rigs for the first time in the past three weeks.
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 21st June on Tuesday. Previously, the API reported that U.S. crude supplies fell by 0.812 million barrels for the week ended June 14. The EIA will report US crude inventories for the week ended June 21 on Wednesday. Previously, the EIA reported that U.S. crude inventories fell by 3.106 million barrels for the week ended June 14.
On the technical front, the RSI is currently at 56.69% and suggests that the market can move in the downward direction. The current price is above the MA5. The %K has crossed the %D from above to the downside at around 94% and suggests that the market can move in the downward direction.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion-Limit Sell At 57.54 Take Profit At 56.90 Stop Loss At 57.84