WTI TOUCHES FIVE-MONTH HIGH ON TIGHT SUPPLY
WTI Crude futures are currently trading at $64.15- higher by 1.39% as compared to the previous closing price. The contract today rose to its highest level since November 2018, boosted by OPEC supply cuts, U.S. sanctions against Iran and Venezuela and fighting in Libya as well as strong U.S. jobs data.
U.S. crude futures hit its highest level since November at $64.36 per barrel earlier in the session.
Brent crude futures were trading at $70.90-higher by 0.66% as compared to the previous closing. The contract touched its highest since November at $70.97 a barrel earlier in the session.
Crude prices were supported by production curb pact agreed by the OPEC and allies including Russia to withhold around 1.2 million barrels per day of supply from the start of this year. Strong U.S. jobs data last week continued to prop up markets.
OPEC is scheduled to meet on June 25-26, to discuss supply policy.
In the U.S., crude oil production reached a global record of 12.2 million bpd in late March. U.S. crude exports have also advanced, breaking through 3 million bpd for the first time earlier in 2019.
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 15 to 831 for the week ended 5th April.
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 5th April on Tuesday. Previously, the API reported that U.S. crude supplies rose by 2.963 million barrels for the week ended March 29. The EIA will report US crude inventories for the week ended April 05 on Wednesday. Previously, the EIA reported that U.S. crude inventories rose by 7.238 million barrels for the week ended March 29.
On the technical front, the RSI is currently at 75.41% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the upper band 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 63.95 Take Profit At 64.55 Stop Loss At 63.65