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Crude Oil Rises as US Oil Rig Count Drops

August 4, 2017 at 18:14 by Vladimir Vyun

Crude oil rallied today as the number of US oil rigs declined this week, though the drop was not big. Baker Hughes reported that the oil rig count decreased by 1 to 765.

Analysts claim that the oil industry is currently in an expansionary cycle. That does not guarantee a bullish trend for oil prices as there are plenty of various unpredictable factors that make predicting cycles and cycle trading unreliable.

Talking about unpredictability, renowned oil trader Andy Hall is closing his major hedge fund, Astenbeck Master Commodities Fund II, due to heavy losses as bets on a rally of oil prices after production cuts initiated by the Organization of Petroleum Exporting Countries did not pay off. The news was considered very bearish to the oil market and may be partly responsible for yesterday’s drop of crude.

September contract for WTI crude oil rose 0.59% to $49.32 per barrel as of 18:03 GMT on NYMEX today. October Brent crude advanced 0.25% to $52.14 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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