APAC: Oil, Initial Thoughts

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.

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.