Crude Oil Price Analysis for March 27, 2017

Crude oil prices were slightly higher on Friday supported by news that Saudi Arabia has reduced exports to the U.S. by about 300k barrels per day in March. Nonetheless, U.S. stockpiles remain at record levels, currently over 530 million barrels, as U.S. shale production offsets OPEC/NOPEC output cuts.  Additionally, active oil rigs have climbed every week in 2017 but one.  Support on crude oil prices is seen near an upward sloping trend line at 47.70. Resistance is seen near the 10-day moving average at 48.60. Prices remain oversold with the RSI (relative strength index) printing a reading of 27, below the oversold trigger level of 30 which could foreshadow a correction.

Active Oil Rigs Continued to Climb

Data from Baker Hughes the oil service giant revealed that the number of active U.S. rigs drilling for oil rose by 21 to 652 rigs this week. The total active U.S. rig count, which includes oil and natural-gas rigs, also increased by 20 to 809.