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Crude Oil Dips Below 40, Hits Fresh 6-Year Low

Crude Oil Dips Below 40, Hits Fresh 6-Year Low

Ryan Cox, Contributor

Talking Points:

  • Crude oil falls below $40 for the first time since early 2009
  • The Baker Hughes US oil rig count increased by 2 platforms – the fifth straight weekly increase
  • Stay updated with economic releases on our DailyFx Calendar

US Crude oil fell below $40 during the New York session Friday, hitting lows last seen on February 2009. The drop below $40 occurred around the same time Baker Hughes released their US rig count numbers. Through the past week active rigs totaled 885 - a rise from last week’s reading of 884 – while oil specific rigs advanced by 2 to 674. That is the fifth straight week the oil rig count has risen after an eight-month period of closures through June that saw 60% of operations taken offline in response to the drop in oil prices that cut profitability. US Crude oil wasn’t the only one to be affected, Brent crude oil also fell to a new six year low.

With global equity markets joining the fray with a sell-off this week and a Chinese weak manufacturing activity indicator from Friday morning added economic weight to weakening fundamentals, energy prices remain under pressure. In the charts below oil is seen dipping below $40. Read more in depth about the weakness spreading through commodities here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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