WTI RISES ABOVE MA5 AHEAD OF U.S.-CHINA TRADE TALKS
WTI Crude futures are currently trading at $53.32-higher by 0.91% as compared to the previous closing price. The contract posted a loss of 5.34% in the last week.
Brent crude futures were trading at $58.79-higher by 0.68% as compared to the previous closing price. The contract fell 4.26% last week.
Crude prices advanced today supported by challenges to supply facing major exporters and also due to hopes of progress in Sino-U.S. trade talks.
Both contracts, however, ended last week at a loss after weak manufacturing data from China and the U.S., with the trade dispute between the two sides undermining global economic prospects.
Officials from the U.S. and China will meet in Washington on Thursday and Friday in a fresh effort to strike a trade deal.
Deadly anti-government unrest has gripped Iraq. The Chinese CNOOC said on Friday (4th Oct.) that the major Buzzard oil field in the British North Sea was shut for pipe repair work.
Brent crude futures are down more than 20% from the 2019 peak of $75.60 per barrel reached in April.
The U.S. CFTC said on Friday that Money managers reduced their net long U.S. crude futures in the week to 1st October.
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 3 to 710 for the week ended 4th October. The oil rig count dropped for the seventh straight week.
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 4th October on Tuesday. Previously, the API reported that U.S. crude supplies fell by 5.920 million barrels for the week ended September 27. The EIA will report US crude inventories for the week ended October 4 on Wednesday. Previously, the EIA reported that U.S. crude inventories rose by 3.100 million barrels for the week ended September 27.
On the technical front, the RSI is currently at 38.72% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger bands but 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 53.22 Take Profit At 53.92 Stop Loss At 52.90