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6 Feb 2015
Oil likely to post biggest weekly gain since 2011
FXStreet (Mumbai) - Brent Oil is on its way to post the biggest weekly gain since 2011 as violence in Libya and signs of strong economic recovery in the US helped prices recover from six-year lows.
Prices are up 20% in a week
Brent prices are up almost 20% over the past six sessions on hopes that falling rig count in the US would help reduce the concerns of supply glut. Prices received additional support from over concerns of dented output from Libya, and from a stronger US jobs report released today. Nonfarm payrolls increased 257,000 last month, data released on Friday showed, while data for November and December was revised up to show 147K more jobs were created than previously reported.
However, analysts say the rally may be short lived as balance in global supply and demand is "still out of reach". Furthermore OPEC delegates say they expect no rapid recovery in oil prices.
Brent Crude Technical Levels
The futures currently trade 2.02% higher at USD 57.72/barrel. The immediate resistance is seen at 58.01, above which gains could be extended to 58.94 levels. On the flip side, support is seen at 56.67 and 56.15 (5-DMA) levels.
Prices are up 20% in a week
Brent prices are up almost 20% over the past six sessions on hopes that falling rig count in the US would help reduce the concerns of supply glut. Prices received additional support from over concerns of dented output from Libya, and from a stronger US jobs report released today. Nonfarm payrolls increased 257,000 last month, data released on Friday showed, while data for November and December was revised up to show 147K more jobs were created than previously reported.
However, analysts say the rally may be short lived as balance in global supply and demand is "still out of reach". Furthermore OPEC delegates say they expect no rapid recovery in oil prices.
Brent Crude Technical Levels
The futures currently trade 2.02% higher at USD 57.72/barrel. The immediate resistance is seen at 58.01, above which gains could be extended to 58.94 levels. On the flip side, support is seen at 56.67 and 56.15 (5-DMA) levels.