WTI oil ticks up beyond $33 as US oil rigs decline for the 10th consecutive week

• Crude oil prices regain the $33 level after the release of the Baker Hughes report.
• US active oil rigs decline for the 10th consecutive week to the lower level on record.
• WTI oil prices remain off highs amid geopolitical tensions and concerns about Chinese economic growth.

Crude oil prices have crawled higher, returning to prices right above $33 on Friday after Baker Hughes reported that the number of US active oil rigs declined for the 10th consecutive week.

US oil rigs fall to a record low

The number of active rigs drilling for oil in the United States declined by 21 in the week of May 22 to a record low of 318, amid the global collapse on oil demand caused by the coronavirus lockdown. These figures confirm the tenth consecutive decline on the oil rig count and the third week in a row posting record lows.

Front-month WTI futures contracts have picked up following the release of the report extending the rebound from session lows at $30.70 to levels right above $33.

The West Texas Intermediate, however, remains well below the $34.65 peak hit on Thursday, The escalating tensions between Washington and Beijing and market concerns about Chinese economic growth have soured market sentiment sending oil prices lower.

Key levels to watch