At the highs today, WTI crude oil was up 24.5% from Thursday’s low of $43.58.
It’s a violent move that really got underway after Friday’s Baker Hughes rig count showed another dramatic drop in drilling. It was compounded by capex cuts announced by Rosneft in BP in the past day.
Technically, a few levels on the upside stand out for would-be sellers. I expect oil producers to start hedging once again as they battle to stay profitable.
WTI crude oil
The mid-Dec low was $53.60.
Trendline resistance: $54.75
The Jan high was $55.11.
The 55-day moving average is at $57.79.
The mid-Dec high was $58.98.