Oil is up at the start of the week, however the fluctuation range is still quite narrow. Brent on November contracts is trading in a $48-$49 per barrel range, with WTI at $45-46 per barrel. Support for the quotes has come from a decrease in extraction rigs in the US, as shown by data from Baker Hughes. According to data from the company, rigs in operation fell by 29 to 809 in the week ending 2nd October; this is a 1113 fall for the year so far with oil extraction rig numbers falling by another 26 last week to 614. The number of gas rigs saw a fall of 2 to 195.
Nevertheless, there are factors which are holding back the price of oil. Saudi Arabia dropped its Asia and US export prices on Sunday. Middle Eastern customers will now pay $1.7 less, whilst Far Eastern customers will pay $2 less and Americans $0.30 less for Saudi oil.
There are no real reasons for us to see a fall in the quotes, just as there’s no real reason to see a rise. Brent will be trading $47-50 throughout the week and WTI will be in a $44-47 per barrel corridor.