- WTI extends gains above $ 42 after Baker Hughes report.
- Active US oil rigs declined last week for the first time in more than two months.
- The market remains cautious with all eyes on OPEC.
WTI futures for the first month extended their rebound from session lows at $ 41.65, to return above $ 42.00 after Baker Hughes reported the first drop in US oil drilling in more than two months.
Oil prices appreciate as US rigs fall
Baker Hughes has reported that active oil drilling rigs in the US decreased by 5 in the week of November 13 to a total number of 231. This is the first time that oil rigs have posted a negative reading since mid-September. September and has been well received by a market. concerned about oversupply amid bleak outlook for global demand due to coronavirus lockdowns.
The West Texas Intermediate barrel price has appreciated more than $ 0.40 after the report was released to hit session highs beyond $ 42.40. The risk sentiment triggered by the announcement by the pharmaceutical company Pfizer about its plan to request an emergency use authorization for its vaccine has been supportive for oil prices, raising the WTI for the third day in a row.
However, from a broader perspective, WTI prices remain within the previous ranges, roughly between $ 40 and $ 43. The market remains cautious as OPEC debates the plan to reduce current production cuts, with all eyes on the November 30 meeting, where the world’s mail producers are expected to present a specific program.
Technically speaking, the pair has reached intraweek highs at $ 42.40, where the bulls could find resistance. If that level is exceeded, the next target would be $ 43 (November 11 high) and the late August highs at $ 43.80. On the downside, immediate support is at $ 41.60 intraday lows, and below $ 41 (Nov 18 low) and below $ 40 (psychological level and Nov 13 and 16 lows). .