The weekly Baker-Hughes Rig Depend is in and the numbers are constructive. U.S. oil rigs in operation elevated by 9, coming in at 318. As well as, whole rigs (pure fuel and oil) got here in at 411, up from 402 final week. Each figures counsel that producers are optimistic about 2021’s vitality markets regardless of ongoing COVID-19 demand considerations and new Biden-era fracking restrictions.
At press time, WTI crude oil is buying and selling within the neighborhood of $61.50, up about $1.50 per barrel. Thursday was an epic session for WTI, with panic promoting driving the market decrease by 7%. That transfer was the biggest since spring 2020 and the onslaught of COVID-19. Sadly, the plunge rendered my buy recommendation for May WTI from $60.00 useless on arrival. Nevertheless, diversification is an effective phrase; my late-day USD/CAD sell recommendation turned out to be a pleasant winner. Each trades had been prime examples of how fickle counter-trend buying and selling might be.
All in all, right this moment’s uptick within the Baker-Hughes Rig Depend is a bullish signal for crude oil. With right this moment’s rebound, the intermediate-term uptrend in WTI stays intact.
Producer Optimism Grows In accordance To Baker-Hughes
If right this moment’s Baker-Hughes figures are any indication, the USD/CAD is more likely to proceed its long-term downtrend. Now, charges are again beneath the each day 38% Present Wave Retracement (1.2507) and in bearish territory.
Overview: As we roll into Monday’s motion, the 1.2500 deal with goes to be the important thing stage for the Loonie. If we see WTI regain Thursday’s losses within the coming two classes, this pair is headed for a take a look at of the Spike Low (1.2365) by this time subsequent Friday.