WTI consolidates above $40 as the Baker Hughes rig count data plateaus

Has the Baker Hughes rig count found its bottom?

The Baker Hughes weekly rig count data stalled again at 251. In the data shown below, you can see since 15th May the number of rigs online has been diminishing. The rate of change is now much slower and this is the first time the number has recorded the same since 14th Feb 2020. 

Jul 31, 2020 251  – Jul 24, 2020 251 – Jul 17, 2020 253 – Jul 10, 2020 258 – Jul 02, 2020 263 – Jun 26, 2020 265 – Jun 19, 2020 266 – Jun 12, 2020 279 – Jun 05, 2020 284 – May 29, 2020 301 – May 22, 2020 318 – May 15, 2020 339.

WTI 4-hour chart

Looking at the chart below, the price has now stalled at USD 40.40 per barrel. There has been some recent selling pressure but it seems today after the OPEC report the price found some support. Total OPEC production did increase but maybe not as much as some had anticipated. There has been a trendline break at the green level and if the price moved toward the line again it could be a resistance point. First up is the red horizontal line at 40.75 and any break above there could indicate that the uptrend is back on after a minor blip lower.

Additional levels