WTI Crude Daily Update for August 29, 2016

WTI crude faded from 48.45 highs, as Saudi oil minister said there was no need for OPEC action to raise prices. He said “we don’t believe any significant intervention in the market is necessary other than to allow the forces of supply and demand to do the work for us”, adding that the “market is moving in the right direction.” The contract subsequently retraced to 47.02 lows, before bouncing following the Baker Hughes rig count. Prices are now hovering near the 10-day moving average at 47.42.

The U.S. oil rig count remains unchanged at 406 following eight consecutive weekly gains, according to the oil service giant Baker Hughes.  Momentum has turned neutral as the MACD trajectory turned flat reflecting consolidation. The RSI is also consolidating reflecting an flat trajectory for price action.