- Baker Hughes rig count falls to 860.
- IEA director says Saudi Arabia has room to increase output.
- The U.S. – China trade conflict continues to weigh on crude oil prices.
Crude oil prices failed to make a meaningful recovery despite a reduction in the number of active oil rigs in the United States. As of writing, the barrel of West Texas Intermediate was trading at $67.60, losing 0.3% on the day. On a weekly basis, the barrel of WTI is down more than $2.
The weekly report published by Baker Hughes energy services on Friday showed that the total number of active oil rigs in the U.S. fell to 860 from 862 a week ago. Nonetheless, markets didn’t show a notable reaction to the data as they remained focused on the headlines on the U.S. – China trade conflict. Speaking to reporters on Air Force One, President Donald Trump announced that they were ready to impose additional tariffs on $267 billion worth of Chinese goods on top of the already planned $200 billion.
Earlier in the day, Chinese news outlet Xinhua reported that Iranian oil exports to the EU declined to 387,000 barrels per day in August to reflect the impact of the U.S. sanctions. On the other hand, Fatih Birol, the head of the International Energy Agency, argued that Saudi Arabia still had room to increase its oil output.
Technical levels to consider
The initial resistance for the barrel of WTI could be seen at $68.80 (20-WMA) ahead of $70 (psychological level) and $71.35 (Sep. 4 high). On the downside, supports align at $66.85 (daily low), $65.70 (Aug. 13 low) and $65 (psychological level).
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