US Oil trades below 200-DMA, extends four-day losing streak

US oil prices closed below 200-DM on Friday and extended the four-day losing streak in the Asian session today.

Prices hit a session low of $47.89 before recovering to 48.10 levels. The daily RSI at 24.83 is oversold, suggesting a potential for a minor corrective move.

US oil rig count rises to most since September 2015

The Baker Hughes data released on Friday showed US drillers added oil rigs for an eighth week in a row to the most since September 2015. The data revealed that the number of active US rigs drilling for oil rose by 8 to 617 rigs.

Higher US production undermines the efforts by the Organization of Petroleum Exporting Countries to cut production and support oil prices. The speculation that Saudi Arabia and other may extend its output cut deal is also failing to support prices.

Across the pond, Brent oil is trading at $51/barrel; down 33 cent or 0.64%.