WTI sticks to gains near $64 despite increasing US rig count

  • WTI up more than $3 for the week.
  • Greenback weakness supports the rise on Friday.
  • Active oil rig count in the U.S. rises to 752.

Following a technical correction during the first half of the day toward the $63 mark, the barrel of West Texas Intermediate gained traction and retook the $64 mark despite signs of increasing oil output from the United States. At the moment the barrel of WTI is trading at $64.10, adding 0.5% on the day.

The weekly report released by General Electric Co’s Baker Hughes energy services firm on Friday showed that drillers in the U.S. added 10 more oil rigs last week, bringing the total number of active rigs to 752. Energy companies seem to be taking the opportunity to increase their output amid the high demand for heating oil and rising prices.

On the other hand, the broad-based selling pressure surrounding the greenback is providing an additional boost to the USD denominated WTI on Friday. The US Dollar Index today broke below the 91 mark to refresh its worst level since January of 2015 and was last seen down 0.87% at 90.86.

Technical levels to consider

The barrel of WTI could face the first technical resistance at $65 (psychological level) ahead of $65.55 (Dec. 8, 2014, high) and $66.90 (Dec. 5, 2014, high). On the downside, supports could be seen at $63.05/$63 (psychological level/daily low), $61.80 (Jan. 9 low) and $61 (Jan. 5 low).

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