WTI RISES ABOVE MA5 AFTER DRONE ATTACK ON SAUDI FIELD
WTI Crude futures are currently trading at $55.52- higher by 1.59% as compared to the previous closing price. The contract last week posted a weekly gain of 0.81%.
Brent crude futures were trading at $59.21-higher by 1.02% as compared to the previous closing price. The contract advanced 0.83% last week.
Crude prices gained today following an attack on a Saudi oil facility by Yemeni separatists and as investors looked for signs that U.S. – China trade tensions could reduce.
Gains were limited to some extent by a downbeat OPEC report on Friday that aroused fears of oil demand growth.
A drone attack on Saturday by Yemeni separatists on an oilfield in eastern Saudi Arabia caused a fire at a gas plant. But state-run Saudi Aramco said that oil production was not affected.
Iran-related tensions appeared to reduce after Gibraltar released an Iranian tanker it captured in the last month.
Fears about a recession also capped oil gains.
The OPEC on Friday (16 Aug) lowered its forecast for growth in global oil demand this year by 40,000 bpd to 1.10 million bpd. The OPEC also signaled that the market would be in slight surplus in the next year.
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 6 to 770 for the week ended 16th August. Energy firms increased the number of oil rigs for the first time in the last seven weeks. Energy firms increased oil rigs despite plans by most producers to reduce spending on new drilling in the year.
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 16th August on Tuesday. Previously, the API reported that U.S. crude supplies dropped by 2.190 million barrels for the week ended August 09. The EIA will report US crude inventories for the week ended August 16 on Wednesday. Previously, the EIA reported that U.S. crude inventories rose by 1.580 million barrels for the week ended August 09.
On the technical front, the RSI is currently at 50.83% 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 55.40 Take Profit At 56.10 Stop Loss At 55.05