- Oil rig count in the U.S. fell to 863.
- ARAMCO announces output boost to counter lower supply from Iran.
After spending the last three days consolidating in a relatively tight range, crude oil prices gained traction on Friday and the barrel of West Texas Intermediate rose to its highest level since July 11 at $73.70. The weekly report published by Baker Hughes energy services revealed that the total number of active oil rigs in the United States declined to 863 to provide a late boost to the WTI.
"For the third quarter, the increase of five oil rigs was the smallest since drillers cut three rigs in the fourth quarter of 2017. They added 50 rigs in the first quarter and 61 rigs in the second quarter of 2018," Reuters noted.
Earlier in the day, Saudi’s oil giant, ARAMCO, announce that it would boost its oil output by 600K barrels per day to make up for the negative impact of the U.S. sanctions on Iran's supply. Although this news dragged the barrel of WTI below the $72 mark earlier in the day, it didn't take for crude oil to reverse its course as investors are looking to reposition themselves in the last day of the quarter ahead of November 4, on which U.S. sanctions against Iran go into effect.
“The market is coming to grips with the fact that the Iranian sanctions are not that far away. It’s going to tighten the market,” Phil Flynn, an analyst at Price Futures Group in Chicago, told Reuters on Friday.
Technical levels to consider
The initial resistance for the WTI aligns at $74.25 (Jul. 11 high) ahead of $75.25 (2018 high) and $76 (psychological level). On the downside, supports could be seen at $72 (psychological level/daily low), $70.80 (Sep. 24 low) and $70 (20-DMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.