- U.S. oil rigs fell for the 15th straight week but only by 1 to 188, while gas rigs remained flat at 75.
- WTI trades 1.67% lower on the session on Friday as the coronavirus headlines continue to worry investors.
The latest Baker Hughes rig count data fell by one on Friday and the Canadian rigs fell by 4 to 13. Over the year this represents a massive fall of 702 but although this is another decline the rate of change is starting to slow. This could mean there is some stabilisation at close to current levels and at the USD 40 per barrel mark.
WTI 1-hour chart
On the hourly chart below, the price has bounced slightly higher since the news was released. The market could have been expecting a worse result as since the 29th May the number of working rigs declined from 301 to where it remains today.
Recently, the price has pulled away from the psychological USD 40 per barrel level. The market hit a high of USD 41.64 per barrel on 23rd June and it seems this could be the retracement after a long rally on the higher timeframes.
Much will depend on how the economies in the world plan to reopen or if they need to lockdown again due to a second COVID-19 wave. Time will tell but it seems rigs are more content with the USD 40 per barrel area and I am sure many oil firms are hoping there is some more price stability too.