WTI

• US oil rig count falls to lowest level since July 2016 at 378.
• US Pres. Trump says Russia and Saudi Arabia could deepen output cuts.
• Angola's oil minister says current output cuts are insufficient to balance oil market.

Crude oil prices rose sharply in the second half of the week and the barrel of West Texas Intermediate (WTI) gained 10% and 20% on Wednesday and Thursday, respectively. Although the WTI staged a technical correction and dropped below the $16 handle earlier in the day, it erased the majority of its losses and seems to have steadied near $17.

Additional output cuts needed

Earlier in the day, Angola's oil minister Azevedo argued that the current oil output cuts of OPEC+ and other producers wouldn't be sufficient to help the oil market rebalance and producers could be called upon to take more drastic measures.

On a similar tone, US President Donald Trump on Friday said Russia and Saudi Arabia could deepen their output cuts. Moreover, Treasury Secretary Mnuchin said the Trump administration was considering the option of buying stakes in energy companies to help the oil and gas industry.

Meanwhile, the weekly data published by Baker Hughes on Friday revealed that oil drillers in the US cut rigs for the sixth week in a row and brought the total active rig count down to 378 from 438. In the month of April, drillers cut 246 in April to register the largest monthly cut in more than five years.

Technical outlook

Oil New York Price Forecast: WTI stabilizes near 17.00/oz.