WTI Crude Daily Update for December 5, 2016

WTI crude oil prices continued to move higher on Friday buoyed by the notion that OPEC is planning on reducing output.  In other data, Baker Hughes, the oil service giant revealed that the number of active U.S. rigs drilling for oil climbed by 3 to 477 rigs this week. The total active U.S. rig count, which includes oil and natural-gas rigs, also rose 4 to 597.  Oil has surged nearly 17% in the latter portion of the week. Prices are poised to test target resistance near a downward sloping trend at 52.10.  Support is seen near the 10-day moving average at 48.10.

Momentum is positive as the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to higher prices. The RSI (relative strength index) moved higher with price action reflecting accelerating positive momentum.

Oil Fundamental Forecast

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