WTI trades above $58 after Baker Hughes data, adds more than 4% for the week

• Venezuela oil production is expected to drop  below one million barrels.
• Baker Hughes oil rig count ticks down to 833.

The barrel of West Texas Intermediate extended its weekly rally to a fresh 4-month high of $58.93 earlier in the day but struggled to push higher as investors started to book their profits ahead of the weekend. As of writing, the WTI was trading at $58.50, losing 0.06% on the day. Despite today’s uninspiring performance, however, the WTI is looking to post its highest weekly close since November and is up around 4.5% on the weekly chart.  

The weekly data published by General Electric Co’s Baker Hughes energy services on Friday showed that the total number of active oil rigs in the U.S. edged down to 833 this week to post its lowest reading since April 2018.

Meanwhile,  U.S. special representative to Venezuela, Elliot Abrams, recently crossed the wires noting oil exports in the country had steadily dropped by approximately “50,000 barrels a month in production” and added that the output was expected to drop below one million barrels in a month or two.

Commenting on the recent market action, “The market is taking a pause as it tries to digest mixed reports that give us different ideas of future supply and demand. The OPEC-plus meeting could give us a little direction,”  Phil Flynn, an analyst at Price Futures group in Chicago, told Reuters.

Technical levels to consider