29 Feb 2016
Oil mixed in Asia, Brent rises 1.20%
Oil benchmarks on both sides of Atlantic had a mixed Asian session, with the US oil reverting to the red, while the Brent is seen extending the rebound.
Has oil finally found a floor?
Currently both crude benchmarks are seen diverging, with WTI marginally lower at 32.73 while the Brent oil rallies +1.23% to 35.50. Both crude benchmarks staged a minor-recovery earlier in Asia after analysts viewed that the black gold was showing signs of bottoming out.
Moreover, the CFTC data also pointed out towards a probable reversal in oil prices. Money managers raised their combined net long position in crude futures and options in New York and London by nearly 16 percent for the week ended Feb. 23.
Further, expectations over OPEC-Russia meeting on output freeze combined with the fall in the number of US rigs, also underpinned the sentiment around oil. The US shale producers cut oil rigs for a 10th week in a row to the lowest levels since December 2009, data showed on Friday.
Analysts at ANZ noted, "The Russian/Saudi production freeze talks continue to support the market, while in the US, shale producers continue to pull rigs from the ground in an effort to reduce spending."
However, looming oversupply concerns continue to weigh on the investors’ minds and hence, might keep any oil price recovery short-lived.
Has oil finally found a floor?
Currently both crude benchmarks are seen diverging, with WTI marginally lower at 32.73 while the Brent oil rallies +1.23% to 35.50. Both crude benchmarks staged a minor-recovery earlier in Asia after analysts viewed that the black gold was showing signs of bottoming out.
Moreover, the CFTC data also pointed out towards a probable reversal in oil prices. Money managers raised their combined net long position in crude futures and options in New York and London by nearly 16 percent for the week ended Feb. 23.
Further, expectations over OPEC-Russia meeting on output freeze combined with the fall in the number of US rigs, also underpinned the sentiment around oil. The US shale producers cut oil rigs for a 10th week in a row to the lowest levels since December 2009, data showed on Friday.
Analysts at ANZ noted, "The Russian/Saudi production freeze talks continue to support the market, while in the US, shale producers continue to pull rigs from the ground in an effort to reduce spending."
However, looming oversupply concerns continue to weigh on the investors’ minds and hence, might keep any oil price recovery short-lived.