The weekly Baker Hughes rig count data showed:
- Oil +2 to 420
- Gas unchanged at 121
- Total rigs +2 to 550
Crude oil rallied strongly this week, gaining 7.9%. The move higher was fueled by several catalysts. First, the U.S. government announced plans to purchase oil for the Strategic Petroleum Reserve (SPR), calling it “a great time to buy oil.” That call proved timely — almost prophetic — as the U.S. later imposed sanctions on Russian oil companies. (Insider timing never hurts.)
Adding to the bullish tone, Wednesday’s EIA report showed a larger-than-expected drawdown in inventories, reinforcing the demand outlook and supporting the week’s advance.
From a technical standpoint, WTI crude broke above a key swing area between $61.45 and $61.94, extending to a high near $62.50 before rotating back into that zone. The market is currently hovering around $61.70.
Looking ahead:
