Oil recovery continued on Friday, ignoring yet another increase in the Baker Hughes’ rig count and concentrating on the further reduction in the global oil supply glut. Over the weekend, Iraq pledged to fully comply with its production cut targets, but the effect has been muted with WTI opening unchanged from its Friday close.
Both Brent and WTI’s price action continue to be constructive in the short term, with both closing at their highs on Friday. However, the going may get tougher to the upside from here in the face of heavy shale producers hedging via the futures market.
WTI spot has resistance just above present levels at 50.60, the early March high and the 100-day moving average. A daily close above opening up a possible move to the 52.00 region. Brent spot has resistance at 54.00 a barrel, the 55-day moving average with further resistance at 54.50.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.