Number of Operating Wells in the U.S. Increases for First Time in Four Years

The increase in shale production in the US indicates an expansion in supply in the energy market, which may slightly support oil prices in the short term. BP's price has dropped by 3.5% in the last 24 hours, with an RSI of 38 and a negative MACD, indicating a technically weak position. However, the impact of the shale production increase may be limited due to its limited effect on the company's direct operations, resulting in a limited market reaction. In the 1-3 day period, price fluctuations are expected in the short term due to the price remaining below SMA20 and SMA50. Overall, the effect of the news is balanced by technical indicators, resulting in a nearly neutral direction.

OXY shares experienced a 2.8% decline in the last close, with the RSI at 46 indicating weak momentum. The MACD line remains below the signal line, suggesting sustained short-term selling pressure. The 20-day SMA crossing below the 50-day SMA is a technical sign of weakening. The increase in unemployment data in the news headline may heighten concerns about energy sector demand. Therefore, the downtrend is expected to continue in the short term.

CVX shares fell 2.95% in the last 24 hours, closing at $190.64. The RSI has dropped to 44.76, below the neutral zone, while the MACD remains below the signal line and in negative territory. Trading below the 20- and 50-day moving averages indicates short-term weakness. The increase in unemployment data highlighted in the news headline may amplify concerns over an economic slowdown, reinforcing negative expectations for energy demand. Therefore, downward pressure is expected to persist in the near term.

The news indicates an economic slowdown in the US as jobless claims rise, which could negatively impact oil demand. Technical indicators also confirm weakness: the RSI is at 44, below the neutral zone, and the MACD is below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, supporting a short-term bearish trend. The 1% decline in the last 24 hours suggests continued selling pressure. However, the downside movement may be limited as additional catalysts are needed to accelerate the decline.