Mon 15 Jan 2018, 09:43 GMT

Oil continues uptrend despite additional active U.S. oil rigs


By A/S Global Risk Management.



Brent oil price again briefly touched the $70 level this morning before retracing to current level of $69.9. The weekly oil rig count from Baker Hughes on Friday showed 10 oil rigs coming online last week to currently 752 active rigs. This is the biggest weekly increase in six months.

Comments about a potential exit plan for the current oil production cut agreement between OPEC and non-OPEC oil producers took headlines over the weekend as Russian energy minister said that the parties could discuss a smooth exit as "...the market is becoming balanced... We need to continue monitoring the situation". Qatari energy minister, however, said that it is premature to discuss an exit strategy.

President Trump on Friday extended sanctions relief for Iran, but also requested that the deal be rewritten within 120 days. He also announced new sanctions targeting Iranian officials over human-rights abuses.

The U.S. markets are closed today due to Martin Luther King Day. Therefore, the weekly oil stocks data from the API and the EIA will be one day delayed to Wednesday and Thursday respectively.

Later this week, the monthly OPEC (Thursday) and IEA (Friday) monthly oil reports are published, which could stir some market volatility.


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