Oil prices are down. A barrel of Brent currently costs $64.62 (-0.2%). A Barrel of WTI is assessed by the market at $60.28 (-0.12%). All movements on energy prices are being dictated by technical factors for the moment. Other than this, a strengthening dollar is also putting pressure on oil prices.
WTI added 1.4% to its value over the course of last week and its price has increased by 12.5% since the start of the year. In the same time period, Brent has become more expensive by 0.9% and since the start of January this year has added 11% to its value.
The number of drilling rigs in the USA declined by 635 last week. This makes it 27 weeks in a row that the number has fallen. This fact is already built into market prices. Market participants’ attention is now focused on the euro/dollar and news from Greece. Towards the end of the month the subject of Iran and its plans of expanding oil exports will come to the forefront. The USA has called the talks with Iran tiresome. Any news of progress in Iran-American dialogue will cause a wave of speculation on the oil market.
Monday’s Brent trading will take place between $64.10-64.85 per barrel. The technically significant support is bang on the $64 mark.