The Baker Hughes total rig count data decreases by 1 as the rate of change falls


  • U.S. oil rigs fell for the 15th straight week but only by 1 to 188, while gas rigs remained flat at 75.
  • WTI trades 1.67% lower on the session on Friday as the coronavirus headlines continue to worry investors.

The latest Baker Hughes rig count data fell by one on Friday and the Canadian rigs fell by 4 to 13. Over the year this represents a massive fall of 702 but although this is another decline the rate of change is starting to slow. This could mean there is some stabilisation at close to current levels and at the USD 40 per barrel mark.

WTI 1-hour chart

On the hourly chart below, the price has bounced slightly higher since the news was released. The market could have been expecting a worse result as since the 29th May the number of working rigs declined from 301 to where it remains today.

Recently, the price has pulled away from the psychological USD 40 per barrel level. The market hit a high of USD 41.64 per barrel on 23rd June and it seems this could be the retracement after a long rally on the higher timeframes. 

Much will depend on how the economies in the world plan to reopen or if they need to lockdown again due to a second COVID-19 wave. Time will tell but it seems rigs are more content with the USD 40 per barrel area and I am sure many oil firms are hoping there is some more price stability too.

Oil Technical Analysis WTI

Additional levels

WTI

Overview
Today last price 38.45
Today Daily Change -0.63
Today Daily Change % -1.61
Today daily open 39.08
 
Trends
Daily SMA20 38.05
Daily SMA50 30.51
Daily SMA100 34.06
Daily SMA200 45.55
 
Levels
Previous Daily High 39.27
Previous Daily Low 37.18
Previous Weekly High 40.6
Previous Weekly Low 34.64
Previous Monthly High 35.92
Previous Monthly Low 19.61
Daily Fibonacci 38.2% 38.47
Daily Fibonacci 61.8% 37.98
Daily Pivot Point S1 37.75
Daily Pivot Point S2 36.42
Daily Pivot Point S3 35.66
Daily Pivot Point R1 39.84
Daily Pivot Point R2 40.6
Daily Pivot Point R3 41.93

 

 

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