WTI Crude oil soared 3% to edge up above $38 per barrel as Hurricane Sally, a category two hurricane, threatens both Gulf of Mexico operations.Baker Hughes data showed on Friday that the number of oil rigs in the United States dropped by 1 to 180. The total number of active oil and gas rigs fell for the week by 2, with oil rigs falling by 1 and gas rigs falling by 1. Total oil and gas rigs in the United States are now down by 632 compared to this time last year. US energy firms have cut the number of oil and natural gas rigs operating for the first time in four weeks.
Oil prices rose on Wednesday, extending gains from the previous session, as a hurricane disrupted U.S. offshore oil and gas production and an industry report showed a big drop in U.S. crude stockpiles. More than 25% of U.S. offshore oil and gas output was shut and export ports were closed on Tuesday as Hurricane Sally sat just off the U.S. Gulf Coast. That is likely to help reduce stockpiles although refineries were also shut down, cutting demand for oil. U.S. crude oil inventories fell by 9.5 million barrels last week, although gasoline inventories increased, data from industry group the American Petroleum Institute showed on Tuesday. Meanwhile, oil producers and traders are painting a bleak picture for a recovery in fuel demand globally as the COVID-19 pandemic rages on, hammering economies. Investors look to the joint ministerial monitoring committee (JMMC) by OPEC+ on Thursday to discuss compliance with deep cuts in production, although analysts do not expect further reductions to be made despite Brent prices falling below $40 per barrel in recent days.
TREND : WEAK BEARISH
Time : 16/09/2020
Pivot : 38.35
Technical View : LONG ABOVE 38.55
Target : 38.75, 39.79, 40.35, 41.64
Technical View : SHORT BELOW 38.15
Target : 37.95, 37.54, 36.35, 35.69