- U.S. oil rig count remains unchanged at 869.
- Demand concerns don't allow crude oil to make a decisive recovery.
- Saudi Aramco to meet future demand through continued investments.
Although easing concerns over the trade conflict between the United States and China provided a much-needed boost to crude oil on Friday, the barrel of West Texas Intermediate remains on track to end the week with losses. After advancing to a fresh daily high at $66.35, the barrel of WTI retraced the majority of its daily earnings and was last seen trading near $65.60, where it was up only 10 cents on a daily basis.
"Although emerging market contagion and China slowdown fears seem somewhat overstated, neither fundamental nor sentiment should provide support for higher commodity prices," Julius Baer Head of Macro and Commodity Research Norbert Rücker, told Reuters.
The weekly report released by Baker Hughes Energy Services showed that the number of active oil rigs in the United States remained unchanged at 869 this week. However, this data by itself didn't change the expectations of higher oil output from the U.S. following Wednesday's EIA report.
Earlier today, Saudi Arabia's Energy Minister Khalid Al Falih said that Aramco, the state's oil producer, was committed to meet the future demand by continuing to increase investments.
Technical levels to consider
The initial resistance could be seen at $66.35 (daily high) ahead of $67.85 (20-DMA) and $69 (psychological level/50-DMA). On the downside, supports are located at $65 (psychological level), $64.40 (Aug. 16 low) and $63.60 (Jun. 18 low).
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