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  • Oil prices holding the support line, propped by Baker Hughes data.
  • Price  capped by the accumulation of the 20 and 200-day moving average.

West Texas Intermediate crude on Friday has been in the hands of the bulls, ending on Wall Street +0.45% between a range of $55.70 and $56.54. The September contract climbed 18 cents, or 0.3%, to end at $56.20 a barrel, logging a 0.8% weekly rise. Recent data from the Baker Hughes showed the number of U.S. oil rigs fell by three this week to 776 which helped to support prices into the close.  

Indeed, oil markets have found some support from decent summer fundamentals, but the decision by OPEC and its allies earlier this summer to extend production cuts continues to support while geopolitical risks have also done their part to prop up prices, despite global growth concerns.

However, gains have been muted in the face of seemingly bullish supply developments with six-week streak of U.S. crude-oil inventory declines. Meanwhile, next week’s trade talks between China and the US will be keenly eyed, as will the Federal Reserve interest rate decision,  

WTI levels

The price has been capped by the accumulation of the 20 and 200-day moving average. On the downside, a break of support located on the rising support line of the channel at 55.80, opens 54.60, (61.8% Fibo.). On the flip side, bulls can look for a test through 57.40 and the accumulation of daily 20, 50 and 200 moving averages opens the 20-week moving average, bulls will then look to the 60 handle and double top in the 60.80s.