Crude Oil Price Drops to $61.40 After Increase in US Oil Rigs

February 11, OctaFX – The price of crude oil extended Friday’s losses after data from Baker Hughes showed a ramp up in activity in the United States. Over the past week, US drillers added 7 new rigs, bringing the total to 584.

This is an indication that oil production, which stands at more than 11.7 million barrels a day, will continue to increase. The price was supported slightly by a huge fire that happened in a Phillips 66 refinery that processes more than 120K barrels a day.

Crude Oil Price Technical Analysis

The price of Brent crude oil declined after weekend news. The pair reached an intraday low of 61.24. The hourly chart shows how volatile the pair has been, which is also evidenced by the Average True Range (ATR) indicator.

The current price of 61.40 is below the 25-day and 50-day EMA. The DeMarker indicator has declined closer to the oversold level. Today, there is a likelihood that the pair will continue to show volatility as investors react to more news from OPEC and US.


This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

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