Oil price fell on Friday as traders balanced the strengthening of USD with the increase of oil rig in the US to the expectation that OPEC talks on production limit will keep the oil price above $50/barrel.
Last week was good week for the greenback, in fact it was the best in seven months and the condition had weighed commodity prices including crude oil.
Meanwhile, Baker Hughes reported that US drillers added 4 more rigs last week. It means numbers of new oil rigs has increased in 16 weeks in a row. This could be sign for more production. Yet, oil price fell last Friday.
Intraday bias for oil currently is neutral. For today, watch the support area at 49.85-49.34 to look for bullish signal confirmation with resistance area at 50.99-51.50 as target. However, keep in mind that the intraday bias is neutral so that you must be very careful if the price managed to break below 49.34 because it possibly will turn the intraday bias into bearish and open the chance for another bearish move to 48.83-48.26.
– Stand aside (recommended)
– Buy on bullish signal confirmation within 49.85-49.34; target at 50.99 or 51.50