West Texas Intermediate (WTI) Oil Prices Drop – Rig Count Rises, Market Remains Range-Bound
West Texas Intermediate (WTI) oil prices dropped over $2 a barrel on Friday, marking a weekly decline as the Middle East risk premium faded and uncertainty about a potential peace deal in Ukraine lingered.
US energy firms added rigs for the fourth consecutive week, reaching 592 rigs as of February 21, per Baker Hughes' closely followed report.
Despite the increase, the rig count is still down 5% from last year.
Oil rigs rose to 488, the highest since September, while gas rigs fell to 99.
The number of rigs dropped by 5% in 2024 and 20% in 2023, driven by lower oil prices and a focus on shareholder returns.
The EIA projects US crude output will rise from 13.2 million bpd in 2024 to 13.6 million bpd in 2025.
Technically, the 3-day RSI has weakened and is negative, with a mixed MACD.
The ADX indicates a range-bound market.
With support holding around $69.60–80, bulls remain focused on the $73.30 resistance.
Traders should stay cautious and watch for any shifts.
Daily Chart West Texas Intermediate (WTI)
This content is provided by Australian Financial Services Corporation (AFSC) Pty Ltd (AFSC), trading as Crystal Ball Finance. AFSC is a corporate authorised representative (CAR No. 001275455) of ShareX Pty Ltd (AFSL No. 519872).
For information relating to our financial services, you should refer to our Financial Services Guide.
Crystal Ball Finance content is designed as the opinion only and is general in nature. It does not take account of your objectives, financial situation or needs. Nothing in this content shall be construed as a solicitation to buy or sell any security or product or to engage in or refrain from engaging in any transaction. There are risks involved in any financial investment and trading strategy, and the value of any investment can and does fluctuate and may even become valueless. You should consider the appropriateness of any investment or trading strategy having regard to your circumstances. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision or applying any trading strategy. This content is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty that it is accurate, complete or up to date. We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. Crystal Ball Finance does not accept any liability whatsoever for any direct, indirect, consequential or other loss.