WTI recovers toward mid-$61s as US oil rig count declines

• Baker Hughes reports a drop in the total number of oil rigs.
• WTI recovers a part of daily losses.
• WTI remains on track to close the fourth straight week higher.

Crude oil prices staged a modest recovery in the last session of the week with the barrel of West Texas Intermediate edging higher to $61.50, where it was still down 0.9% on the day.

In its weekly report, General Electric Co's Baker Hughes energy services firm said that the U.S. based oil drillers removed 5 oil rigs to bring down the total number of active rigs to 742 in the week to January 5. Including the natural gas rigs, the count is 924.

Earlier this week, the unrest in Iran and expectations of a stronger global demand amid robust economic growth allowed crude oil prices to start the year on a positive note. Moreover, the unusually cold weather in the U.S. continued to decrease the crude inventories in the U.S. and provided an additional boost. Both Brent and WTI refreshed their highest levels since May 2015 on Thursday before making a correction on Friday. Investors may also be looking to take some of their profits off the table ahead of the weekend.

Despite today's retreat, the barrel of WTI is headed to the fourth straight positive weekly close. Since the second week of December, the barrel of WTI added nearly 10%.

Technical levels to consider

With a daily close above $62.60 (May 6, 2015, high), the barrel of WTI could aim for $63.40 (Dec. 10, 2014, high) and $64 (psychological level). On the downside, supports are located at $61.10 (daily low), $60 (psychological level) and $59.49 (Dec. 28, 2017, low).