WTI goes into consolidation near mid-$25s, gains nearly 30% for the week

• WTI trades in a relatively tight range on Friday.
• Active oil and gas rigs in the US fell to an all-time low of 374.
• WTI gains more than 29% on a weekly basis.

After dropping below $25 on Thursday, the barrel of West Texas Intermediate (WTI) pushed higher on Friday but failed to hold above $26. As of writing, the WTI was up 2.8% on the day at $25.50 and remains on track to gain more than 29% for the week.

Energy demand outlook improves

The Trade Balance data from China, which showed a sharp increase in oil imports, and a smaller-than-expected build in US crude oil stocks this week boosted oil prices. Moreover, easing demand concerns amid measures taken by the US and major European countries to reopen their economies had a positive impact on the WTI as well.

Finally, the weekly data published by Baker Hughes revealed that the number of active oil and gas rigs in the US fell to an all-time low of 374 in the week ending May 8th. Commenting on the data, "the great coronavirus derigging kicked off mid-to-late in the first quarter, impacting well starts across the major US oil shale plays," analysts at Enverus Rig Analytics told Reuters.

Meanwhile, the US Bureau of Labor Statistics reported that Nonfarm Payrolls in April declined by 20.5 million. This reading came in better than the market expectation of 22 million and helped the market mood remain upbeat on Friday.

Technical levels to consider