WTI Crude Daily Update for January 23, 2017

Crude oil moved higher on Friday, gaining slightly more than 2% and poised to test short term resistance near the 20-day moving average at 53.62.  A close above this will lead to a test of the 55.22 zone.  Support is seen near the January lows at 52.19.  A larger than expected rise in the oil rig count failed to cap the market. OPEC is scheduled to have a meeting this weekend and confirm their production target which has buoyed prices. Momentum remains negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory which points to lower prices.

On Friday Baker Hughes, the oil service giant, revealed that the number of active U.S. rigs drilling for oil jumped higher by 29 to 551 rigs this week. The oil rig count had edged lower last week, but rose in each of the 10 previous weeks.