Brent Crude oil Prices Rise 2 percent – Market steady After Rebound

Oil prices rose by 2 percent on Monday, recovering some of last week’s steep losses as Asian stock markets found a footing after days of chaotic trading.

Brent crude futures were at $64.06 per barrel at 09:00 am GMT, up 1.99 percent, from the previous close. U.S. West Texas Intermediate (WTI) crude futures were at $60.41 a barrel. That was up 2.06 percent, from their last settlement.

The stronger prices came after crude registered its biggest loss in two years last week as global stock markets slumped.

But with U.S. equities rebounding on Friday and Asian markets seemingly steadying on Monday, analysts said crude was also supported.

U.S. energy companies added 26 oil rigs looking for new production this week, boosting the count to 791, the highest since April 2015, General Electric’s Baker Hughes energy services said on Friday.

“The increase over the last month has been driven primarily from private producers,” U.S. bank Goldman Sachs said in a note to clients on Monday.

The soaring U.S. output is undermining efforts led by OPEC and Russia to push up prices with production cuts that started in 2017 and are set to last through 2018.

On the technical charts, Brent oil is trading in the positive zone, bouncing back from the lower band of the Bollinger bands. The market is trading below all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 37.47 and the MACD is below the signal line. Positive bias is dominating the market sentiment.

Trade suggestion:

Buy limit at 64.10, take profit at 64.48, stop loss at 63.90

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