WTI Crude Daily Update for February 27, 2017

Crude oil prices moved lower on Friday, and remains range bound, unable to break out despite continued compliance from OPEC.  The small inventory build in crude oil was offset by a large total petroleum draw.  Exports from the United States are increasing at a rapid rate, which shows strong oil demand.  Resistance is seen near the weekly highs at 55.03, while support is seen near the 10-day moving average at 53.72.  Momentum is neutral as the MACD (moving average convergence divergence) index prints near the zero index level with a flat trajectory which reflects consolidation.

The RSI (relative strength index) which is a momentum oscillator, is printing a reading of 55, which is in the middle of the neutral range. An increase in the active rig count has kept prices capped. The weekly Baker-Hughes oil rig count report revealed a sixth straight week of increases, up 5 this week to 602, and up 202 from a year ago.