Crude Oil Price Update – Strong Close Makes $53.60 Easy Target Early Next Week

U.S. West Texas Intermediate crude oil futures are in a position late Friday to post their ninth positive week in 10 after hitting its highest price in nearly a year earlier in the session. Helping to fuel today’s gains is Saudi Arabia’s pledge to cut output in order to support an expected drop in demand, lower than expected U.S. crude stockpiles and strong gains in the major U.S. equity markets.

At 21:18 GMT, February WTI crude oil is at $52.73, up $1.90 or +3.74%.

In other news, U.S. energy firms this week added oil and natural gas rigs for a seventh week in a row as higher energy prices have prompted producers to pull more fuel out of the ground in recent months.

The oil and gas rig count, an early indicator of future output, rose nine to 360 in the week to January 8, its highest since May, energy services firm Baker Hughes Co said in its closely followed report on Friday.

Despite the gains in recent months, that count was still 421 rigs, or 54%, below this time last year.

U.S. oil rigs rose eight to 275 this week, their highest since May, while gas rigs rose one to 84, their highest since April, according to Baker Hughes data.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out the previous day’s high earlier in the session. The main trend will change to down on a move through $47.18.

The nearest support is a pair of minor 50% levels at $49.96 and $49.45.

Short-Term Outlook

Unless a force comes along over the weekend to suck the upside momentum out of this market, February WTI crude oil has a clear shot at the February 20, 2020 main top at $53.60 early next week.

Even if the main trend changes to down over the near-term, traders know that OPEC+ has their back and will adjust production accordingly to combat any signs of weaker demand and to stabilize prices. It looks like a brilliant strategy so far as long as the group stays together.

For a look at all of today’s economic events, check out our economic calendar.