CL New York Oil Futures - U.S. oil and gas production resumes after hurricane, oil price rebound limited

Oil prices fell on Friday as U.S. Gulf of Mexico crude production resumed after Hurricane Francine and data showed an increase in the number of U.S. rigs drilling for oil. U.S. crude oil closed at $68.65 a barrel, down 32 cents, or 0.5%. Energy services group Baker Hughes reported its largest weekly increase in the number of U.S. oil and gas rigs in a year, also hitting crude prices. The oil and gas rig count rose by 8 to 590 in the week ended September 13, returning to mid-June levels and marking the largest weekly increase since the week of September 15, 2023.

As seen on the technical chart, RSI and stochastic index are recovering from the oversold area, indicating that oil prices are approaching the bottoming out stage in the short term. The current resistance level is estimated to be at the $70, with the more important ones being $71.50 and the 25-day moving average of $73.20. Support below is expected to be at $67.20 and $65, with further reference to the low of $63.64 in May 2023.

Forecast range:
Resistance 70.00 – 71.50 – 73.20
Support 67.20 – 65.00 – 63.64

Focus:
Tuesday: Canadian CPI in August (20:30)

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