WTI stays in range below $67 after Baker Hughes report

• US drillers add oil rigs for the second week in a row despite falling oil prices.
• The barrel of WTI looks the close the week around $1 lower.

The price of the barrel of West Texas Intermediate didn’t show a reaction to the latest Baker Hughes report, which showed that American drillers added two more oil rigs in the week ending June 1, increasing the total count to its highest level in more than three years at 861. At the moment, the barrel of WTI is trading at $66.35, losing $1 on the day.

Since renewing its highest level in more than three years near  $73 last week, the barrel of WTI has been having a difficult time gaining traction as crude oil prices are facing a selling pressure amid concerns of Russia and OPEC possibly ramping up production levels.  

Although some reports citing Saudi sources claimed that OPEC and non-OPEC producers would continue to abide by the supply-cut agreement until the end of the year and maybe even extend it, crude oil prices failed to make a meaningful recovery.

Meanwhile, the Energy Information Administration (EIA) latest monthly report, which was released on Thursday, showed that the crude oil production in the United States advanced to a record high of 10.47 million barrels per day in March with a 215,000 bpd increase during the month.

Technical levels to consider

With a decisive break above $68.70 (May 30 high), the barrel of WTI could aim for  $70 (psychological level) and $71.35 (May 9 high). On the downside, supports could be seen at  $66.40 (May 30 low), $65.80 (May 28 low), and $65 (psychological level).