WTI INCHES UP AS OPEC CUTS OFFSET GROWTH CONCERNS
WTI Crude futures are currently trading at $53.62- higher by 0.41% as compared to the previous closing price.
Brent crude futures were trading at $62.47-higher by 0.18% as compared to the previous closing.
Crude prices rose today in line with firmer stock markets and boosted by expectations that the OPEC and its allies will keep withholding supply.
Russia said earlier today that it might support an extension of OPEC-led supply cuts that have been in place since the beginning of the year, giving crude oil a lift.
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 2-4 in Vienna, to discuss supply policy.
Concern about economic growth and slowing demand also weighing on crude prices.
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 11 to 789 for the week ended 7th June. It was the lowest oil rig count since February 2018.
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 7th June later today. Previously, the API reported that U.S. crude supplies rose by 3.545 million barrels for the week ended May 31. The EIA will report US crude inventories for the week ended June 7 on Wednesday. Previously, the EIA reported that U.S. crude inventories rose by 6.771 million barrels for the week ended May 31.
Also, according to the EIA’s data released last week, US crude production rose to a weekly record at 12.4 million barrels per day.
On the technical front, the RSI is currently at 34.32% and suggests that the market can move in the upward direction. The current price is below the MA5. The %K has crossed the %D from below to the upside at around 7% 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 53.49 Take Profit At 54.09 Stop Loss At 53.19