04-06-2018 10:30 AM
Crude oil prices edged lower on Friday, marking their second straight weekly loss in the middle of indications of in progress U.S. expansion and indecision over whether OPEC would ease production limits.
According to data from energy services firm Baker Hughes, pointing to signs of an expansion in U.S. output - the number of oil rigs operating in the US increased by 2 to 861, its highest level since March 13, 2015,
The increase in drilling activity appear as the Energy Information Administration said Thursday U.S. oil output rose 215,000 barrels per day to a record 10.47 million barrels per day in March.
Traders appeared to be hedging their bullish bets on a global oil shortage as OPEC’s June 22 meeting draws closer. CFTC COT data last week revealed approximate net long positions in WTI crude oil fell to 377,520 from 385,283 in the prior week.
Crude oil prices standby support line at $65.50. As the “Ascending broadening wedge chart pattern” is in a daily chart, the crude oil main trend is down, but the closing price is in reversal bottom. So crude oil prices have plenty of chances to pull back the trend up to $66.50 level with intraday perspectives. If it breaks lower at $65.50, then it would move towards to $64.23-61.90. It would be a risky trade. Risky traders buy on dips maintaining strict stop loss. We can expect a bounce back with a little bit of profit at $66.50. Once it breaks below, then make a fresh short entry downside as the target is modified.