On Friday rigs increase by 2 .
The price of crude is down -$0.43 at $57.93, as US oil rigs increased by another 2 rigs from the Baker Hughes rig count on Friday. That addition brought the total rig count to 749, the highest since September. The change is not a lot week on week, but the trend is back to the upside as oil prices move higher. That could help boost supply and push prices lower.
Counter to that news, is OPEC. Last week, OPEC (and some non-OPEC countries) announced an extension of the production cuts to the end of 2018. That agreement helped to push the price higher.
The front contract remains near the highest level going back to June 2015. On the daily chart above, the contract is running away from the January 2017 high at $55.24 area (it based against the 200 day MA in September - green line - and ran higher too). Stay above that level keeps the buyers more in control - in the longer term
Drilling to the hourly chart below, the contract stalled ahead of the week's high at $59.05 on Friday. That led to some profit taking into the close. Today, with the price even lower, it is approaching the 200 and 100 hour MAs at $57.81 and $57.73 respectively. That area is the closest support target to look for buyers. Stay above and the buyers remain in control.
However, on a break, we could be in for a run toward the 50% of the move up from the mid-November low at $56.93 area. That would be an interim target before the $55.24 level.
For now, support is being approached at the MA levels. Will the buyers show up against the low risk defining level?
