WTI unresponsive to oil rig count data, remains above $47

Crude oil prices continue to trade in its relatively tight daily range on Friday as the volume thins out ahead of the three-day long Labor Day weekend in the U.S. As of writing, the barrel of West Texas Intermediate was trading at $47.15, 6 cents above yesterday's closing price.

The data released by the Baker Hughes revealed that the number of oil rigs in the U.S. remained unchanged at 759 while the total active rig count including the natural-gas rigs increased by 3 to 943, failing to cause a market reaction. Since the barrel of WTI spiked above the $40 handle in the last week of July, it remained under pressure and is headed for its fifth straight weekly close with losses. 

Although this week a survey by Reuters showed that the 13 OPEC members', which take part in the output cut deal, compliance increased to 89% in August from 84% in July, the news of refineries in Texas returning to production after the Hurricane Harvey didn't allow crude oil prices to recover.

• Iraq’s OilMin: Iraq is in full compliance with OPEC deal - RTRS
• OPEC oil output falls by 170,000 bpd in August - Reuters

"Marathon Petroleum Corp’s Galveston Bay Refinery in Texas City has raised production to 45 percent of its 459,000 bpd capacity, while Citgo Petroleum Corp on Friday said it was beginning to restart its 157,000 bpd refinery in Corpus Christi. This news has helped support crude prices, while also calming fears of fuel shortages ahead of the U.S Labour day weekend," Reuters wrote in a recent report. Moreover, United States Energy Secretary Rick Perry said that an additional 3.5 million barrels of crude oil were approved for release from the strategic petroleum reserve in the last 24 hours.

Technical outlook

The barrel of WTI could face the initial support at $45.75 (Aug. 29 low) ahead of $45 (psychological level) and $43.80 (Jul. 7 low). On the upside, resistances align at $47.50 (Sept. 1/weekly high), $48.20 (Aug. 28 high) and $49.15 (Aug. 14 high).