Monday’s oil prices are showing a rise. Brent on November contracts is trading $52.5-53 per barrel. WTI with November delivery is trading $49.5-50 a barrel.
Quotes have reached the resistance level where the bear pressure mounts. New prospects for the bulls will open up only if Brent can strengthen above $54.5 per barrel and WTI above $51 per barrel. For the moment, overcoming these important psychological barriers isn’t possible, despite the positive statistics on Friday from Baker Hughes. According to the data, US drilling rig numbers fell by 14 to 795 in the week ending 9th October. This is a fall for the year of 1135 (58.8%).
This week awaits US oil reserve stats, as well as new Baker Hughes data. We believe that the bulls will try to pass the psychological barriers and lift the price of oil above what it now stands at.