- Oil rig count in the U.S. fell to 860.
- North Sea strike is expected to drag the global supply.
- Reports point to a continuous decline in Iran supply.
Crude oil prices gained traction on Friday and the West Texas Intermediate gained more than $1 on its way to close the week higher following three straight weeks with losses. At the moment, the barrel of WTI is trading at $69, adding 1.6% on a daily basis.
Earlier today, reports of U.S. sanctions continue to weigh on Iran's, the third largest producer in the OPEC, supply provided the initial boost to oil. According to Reuters, "third-party reports indicate that Iranian tanker loadings are already down by around 700,000 bpd in the first half of August relative to July, which if it holds will exceed most expectations. We expect that by Q4 the market will be dealing with either undersupply, dwindling spare capacity - or both," U.S. investment bank Jefferies reported on Friday.
The weekly report published by Baker Hughes Energy Services revealed that the number of total active oil rigs in the U.S. fell to 860 this week from 869. This weekly decline of 9 rigs marked the biggest fall in more than 2 years. Earlier this week, the crude oil inventory numbers released by the API and the EIA showed a draw of 5.17 million and 5.8 million barrels respectively.
Technical levels to consider
The immediate resistance for the WTI could be seen at $69.15 (daily high/50-DMA) ahead of $70 (psychological level) and $70.85 (Jun. 26 low). On the downside, supports are located at $67.50 (20-DMA), $66 (Aug. 22 low/psychological level) and $65.30 (Aug. 21 low).
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
USD/JPY holds above 155.50 ahead of BoJ policy announcement
USD/JPY is trading tightly above 155.50, off multi-year highs ahead of the BoJ policy announcement. The Yen draws support from higher Japanese bond yields even as the Tokyo CPI inflation cooled more than expected.
AUD/USD extends gains toward 0.6550 after Australian PPI data
AUD/USD is extending gains toward 0.6550 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price keeps its range around $2,330, awaits US PCE data
Gold price is consolidating Thursday's rebound early Friday. Gold price jumped after US GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the Fed could lower borrowing costs. Focus shifts to US PCE inflation on Friday.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.