WTI clings to small daily gains above $36 as active oil rigs in US continue to decline

• WTI struggles to extend daily recovery above $37 on Friday.
• The number of active oil rigs in the US fell to 199.
• Worries over weak global energy demand outlook keep oil's gains limited.

Crude oil prices fell sharply on Thursday as resurfacing worries over a second coronavirus wave causing shutdowns weighed on the energy demand outlook.

After losing 7.5% and closing at $36.12 on Thursday, the barrel of West Texas Intermediate (WTI) staged a rebound on Friday but lost its momentum near $37. As of writing, the WTI was up only 0.4% on the day at $36.25.

Baker Hughes report supports WTI

Although the market sentiment seems to have improved on Friday, investors remain cautious with major equity indexes in the US pulling away from daily low tops. The S&P 500, which opened the day more than 2.5% higher, was last seen gaining 0.7% on a daily basis.

Meanwhile, the weekly data published by Baker Hughes Energy services showed on Friday that the number of active oil rigs in the US declined to its lowest level since June 2009 at 199 and helped the WTI cling to its gains. 

Technical levels to watch for