Crude oil opens in Asia in a positive mood, with both Brent and WTI rising slightly following on from last week’s positive price action. The Baker Hughes Rig Count, released very late on Friday in New York, showed an unchanged headline number at 952 with only a two rig increase in active oil rigs. The slowing pace of increases combined with massive drawdowns last week on both official crude inventory numbers from the U.S. probably explains the positive sentiment in general at the moment.
Looking to the week ahead, attention will remain focused on the U.S. API, and EIA Crude Inventory counts with next Monday the 24th also being an OPEC/Non-OPEC technical management meeting in St Petersburg. Nigeria and Libya have been “invited” to attend, but we feel the chances of either joining the overall cuts is remote as are the chances of any other surprises on that front. Last week’s price action has taken the heat of the grouping, for now.
Brent spot trades 48.95 this morning with resistance at 49.70 and then 50.00. Support is at 48.00 and then 47.00.
WTI spot trades at 46.65 with resistance initially at 47.20 before the more formidable 48.20 region. Home to the 100-day moving average. Support comes in at 45.70 and then 45.00.