As West Texas Intermediate crude (WTI) slips lower, the arena is open for a bullish return – Support viewed from $57.00-45

January 14, 2020 - 7 months ago
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West Texas Intermediate (WTI) and Brent crude oil finished lower for the sixth consecutive trading session and is now hovering above the key support region of $57.00-45.

Overnight, WTI crude prices slipped to an intraday low of $57.87.

As the Middle East tensions ebb, WTI prices have now lost over -8% since the peak from $65.00.

Easing Middle East tensions to this week’s scheduled signing of an initial U.S. and China so-called “Phase-One” trade deal due to be signed in Washington on Wednesday could ignite bullish enthusiasm.

Elsewhere, Friday’s report from Baker Hughes was released to the public. The number of active U.S. rigs drilling for oil fell by 11 to 659 last week, declining for a third straight week.

The total active U.S. rig count now stands at 781, the report showed. The 781 rigs include 759 land drilling rigs, down by 14 from the previous week; 21 offshore drilling rigs, down by one; and one inland water drilling rig which remained unchanged from last week.

Of them, 45 are directional drilling rigs, 698 are horizontal drilling rigs, and 38 are vertical drilling rigs.

From a technical standpoint, support is viewed from $57.00-45, which is expected to draw renewed demand if encountered by a bearish challenge.

Viewing the topside, resistance comes in at $60.70-75 with $63.50 firmer above.

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