WTI RISES ABOVE ALL MAs ON OPEC OUTPUT DEAL
WTI Crude futures are currently trading at $55.97-higher by 0.43% as compared to the previous closing. Crude gained for a fifth day on Monday and is on track for its strongest first quarter in eight years. Oil prices rose today due to a growing belief among investors that OPEC’s supply cuts will prevent a build-up in unused fuel, though concern over Chinese economy limited gains.
Brent crude futures were trading at $66.33-lower by 0.03% as compared to the previous closing. Crude oil has risen about 25% so far this year.
Energy services firm Baker Hughes said in its weekly report on last Friday that the U.S. energy firms last week increased the number of rigs looking for new oil by three to a total of 857, pointing to a further rise in U.S. crude production.
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 15th February on Wednesday. Previously, the API reported that U.S. crude supplies fell by 0.998 million barrels for the week ended February 8. The EIA will report US crude inventories for the week ended 15th February on Thursday. Previously, the EIA reported that U.S. crude inventories rose by 3.633 million barrels for the week ended February 8.
Indian Oil Corp. has signed its first annual deal to buy U.S. oil, paying about $1.5 billion for 60,000 barrels a day in the year to March 2020, its chairman said earlier today.
On the technical front, the RSI is currently at 63.36% and suggests that the market can continue trading sideways. 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 55.80 Take Profit At 56.50 Stop Loss At 55.50