West Texas Intermediate (WTI) crude prices continue to struggle in recapturing the momentum since plunging from the $65.00 handle.
WTI oil bulls even shrugged off the geopolitics after remaining high on the radar over the weekend, after Iran admitting it downed a Ukrainian jet after mistaking it for a cruise missile.
Meanwhile, President Trump warned Iraq with a sanction after the Iraqi Parliament decided to defend the sovereign right to expel U.S. troops.
The act comes after U.S. drone attacked and “assassinated” Iran’s military leader General Qasem Soleimani in Baghdad.
Last Wednesday, Iran shot more than a dozen missiles at U.S. military bases in Iraq, but U.S. media reported no casualties. Trump played down the strike. However, Japanese media reported 20 casualties had been found on the sabotaged sites.
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.