The Baker Hughes Rig Count Comes In Negative
If today’s Baker-Hughes Rig Count is any indication, there isn’t a lot of positive sentiment toward the oil markets.
Another Friday, another record low Baker-Hughes Rig Count. As of today’s report, there are 188 U.S. oil rigs in operation, an all-time low. This figure is down from 189 last week and shows that although WTI is back around $40 per barrel, there’s no hurry to fire up North American fracking operations.
As far as the Baker-Hughes report goes, the most telling stat is the year-over-year drop in active U.S. oil and gas rigs. Compared to last year at this time, the count is down by 702, coming in at 265. This is an epic decrease and one that will have a profound impact on North American shale for years to come.
Despite the plunge in active rigs, August WTI crude oil is holding firm near $38.50. While the drop in U.S. fracking output is supporting prices, there is modest volatility in WTI futures today.
Rig Count Falls, USD/CAD Holds Firm
It’s been another relatively quiet week for the USD/CAD. The WTI market has been muted and the action of the Loonie tells the story ― both bulls and bears are treading lightly.
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Going into Monday’s trade, there are two levels to keep an eye on:
Overview: If today’s Baker-Hughes Rig Count is any indication, there isn’t a lot of positive sentiment toward the oil markets. Accordingly, the USD/CAD may be poised to break to the bull if oil supplies continue their upward trajectory next week. However, until we see rates break outside of the support/resistance levels listed above, this market is likely to remain stuck in the mud between 1.3600 and 1.3700.
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