WTI RISES ON TALK OF FURTHER OPEC+ SUPPLY CUTS
WTI Crude futures are currently trading at $56.26-higher by 1.60% as compared to the previous closing price. The contract posted a loss of 4.24% in the last week. U.S. crude futures, however, registered its biggest monthly gain in the last month since June.
Brent crude futures were trading at $61.69-higher by 2.90% as compared to the previous closing price.
Crude Oil prices rose today boosted by signals that the OPEC+ group may agree to extend supply cuts at a meeting this week. Better-than-expected manufacturing data from China also lifted investor’s sentiment today.
The OPEC+ producer group will meet on Thursday and Friday to review the policy which limits supplies until March 2020. The producer group is expected to extend its production cut to mid-2020.
According to market sources, the OPEC+ group is also expected to increase the size of the cut by at least 40,000 barrels per day.
Crude prices declined on Friday (29th November) on fresh trade tensions and record-high U.S. crude oil production.
Crude also gained today, lifted by a surprise return to growth in Chinese factory activity in the last month. The strong economic data is supportive of the demand outlook for the crude.
The U.S. government reported on Friday that its production in September rose to a new record of 12.46 million barrels per day.
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 668 for the week ended 27th November.
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 29th November on Tuesday. Previously, the API reported that U.S. crude supplies rose by 3.639 million barrels for the week ended November 22. The EIA will report US crude inventories for the week ended November 29 on Wednesday. Previously, the EIA reported that U.S. crude inventories advanced by 1.572 million barrels for the week ended November 22.
On the technical front, the RSI is currently at 48.01% and suggests that the market can move in the upward direction. The current price is below 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 56.20 Take Profit At 56.84 Stop Loss At 55.86