WTI clings to daily gains after Baker Hughes data, adds nearly 10% this week
- U.S.-Iran conflict fuels crude oil's rally this week.
- Baker Hughes rig count ticks up to 789 from 788.
- Barrel of WTI posts largest weekly gain in a long time.
Crude oil rallied this week boosted by a number of critical developments and the barrel of West Texas Intermediate gained nearly 10% to post its largest weekly percentage gain since November 2016. As of writing, the WTI was adding nearly $5 on the week and 0.6% on the day.
Escalating tensions in the Middle East after Iran shot down a U.S. drone earlier this week caused concerns over major supply disruptions and President Trump announced that more sanctions on Iran were added last night. Commenting on the conflict and its potential impact on the oil market, "There is no doubt that a severe disruption to the transit of oil through this vulnerable route would be extremely serious," said consultancy FGE Energy in a note, via Reuters.
Additionally, hopes of President Trump and President Xi meeting on the sidelines at the G20 and taking a step toward a trade agreement provided an additional boost to commodities this week.
Meanwhile, the last data of the week from the U.S. published by Baker Hughes Energy Services revealed that the number of active oil rigs in the U.S. rose to 789 from 788 a week ago but didn't have a notable impact on crude oil prices.
Technical levels to watch for