- Summary:
- Crude oil price is holding steady today as investors digest the upbeat economic data. But there is a major concern in that oil rigs in US is rising.
Crude oil price edged upwards today after a series of positive news during the weekend. The price of Brent is up by 0.70% to $50.30 while that of West Texas Intermediate (WTI) is up by 0.60% to $46.85.
What happened: There were several positive news and events during the weekend. First, the Food and Drug Administration (FDA) authorised the vaccine manufactured by Pfizer and BioNTech. As a result, the company started to distribute the vaccine in the United States. Other countries will possibly authorise the vaccine in the near term.
Crude oil price also rose after relatively strong economic data from Japan. Earlier today, the numbers showed that small and large manufacturers in the third-biggest economy in the world are optimistic about the economy. In addition, oil prices are reacting to a growing Chinese economy and the decision by the EU and UK to extend their deliberations.
But. But. But: Investors are worried about the rising number of oil rigs in the US. In a report on Friday, Baker Hughes said that oil rigs in the country rose by 12 to 258. This is substantially higher than the YTD low of about 165. It is also a sign that supply from the US will keep rising.
Oil prices technical chart
What next for oil prices? Turning to the four-hour chart, we see that Brent crude oil price rose to a high of $50.33, which is a few points below last week’s high of 51. The price is still supported by the short and medium-term moving averages and the red ascending trendline. The two lines of the Stochastic oscillator are also doing a bullish crossover, which means that the price will possibly continue rising.
Crude oil price chart
