- Oil barrels are drifting higher as US oil rig counts decline for a second time.
- Saudi Arabia produced much less oil per day than expected, especially considering OPEC was supposed to be lifting barrel counts.
Crude oil prices are catching some lift in the week’s early trading, with WTI barrel prices pushing over the 68.75 level as Saudi output begins to slide while US drilling efforts stall out.
US oil drilling has leveled out recently, and the active oil rig count has declined twice in the past month, and the Baker Hughes energy services firm says that US oil rig counts currently sit at 859, with two more oil rigs being shuttered in the week to August 3rd.
In Saudi Arabia, 10.29 million barrels per day were produced by the Middle East’s largest power, a surprising decline of almost 200,000 bpd, and the decline is hitting oil markets twice as hard as the decline in production amounts is announced amidst a supposed period of production increases by OPEC.
WTI levels to watch
Monday’s rise in oil costs continues a bounce from last week’s low of 66.90, and US crude prices are making a run for the last swing high of 69.33, though the recent peak of 70.40 remains just out of reach, with support from Friday’s bottom of 67.85.
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