Oil Stays on the Boil

Crude continued its great comeback into the finish of the week, as geopolitical tensions in the Middle East overrode an anaemic Non-Farm Payrolls and yet another jump in the Baker-Hugh’s Rig Count. Both Brent and WTI have now recouped all of their March losses, with Brent, in particular, looking the more constructive on the technical picture.

 

Both crudes will continue to be headline rather than fundamentally driven this week. Although Friday’s Syria strike was almost certainly a one-off, with so many players in proximity, the situation will remain “fluid” to say the least. Early Asia trading appears to have received another boost with the news that a U.S. carrier battle group has been dispatched to waters of the Korean peninsula on sabre-rattling duty.

 

WTI spot basis has traded 0.5 cents higher in early Asia trade and has resistance at 52.70 and then 54.60.

Brent spot basis will open with a bid tone around 55.00 with resistance at 56.00 initially. Above here looms the key 57.00 level with a daily close above being a very bullish indicator of potentially more gains ahead.

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.

Jeffrey Halley

Jeffrey Halley

Senior Currency Analyst
Based in Singapore, Jeffrey has over 25 years experience in the financial markets, having traded currencies, options, precious metals and futures. Jeffrey started his career at Barclays Bank in New Zealand. However he has spent most of it in London and Asia.Jeffrey focuses on the Asia time zone across asset classes. A regular commentator on business news TV and Radio, he is originally from New Zealand and holds an MBA from Cass Business School, London.
Jeffrey Halley

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