Oil prices rose Monday morning by around 0.60% to $65.23/bbl as of 9.05AM GMT compared to last Friday’s settle. The WTI market also witnessed a similar trend; with the benchmark edging up by 0.96% to $62.27/bbl, during the same time mark.
Crude markets have rebounded recently, as they have been buoyed by a recovery in the equities market, with Asian shares being the latest to reverse to positive sentiment, following the global recovery. In addition to this, concerns of growing tensions in the Middle East have also helped support prices. Israeli Prime Minister Benjamin Netanyahu said on Sunday his nation could act against Iran itself after border incidents in Syria.
The fleet of active oil rigs operating in the US rose again by seven to 798, according to Baker Hughes’ report. This marks the first time since June that US energy companies have added rigs for four consecutive weeks. The total active rigs now are a significant increase compared to a year earlier which stood at 597.
Money managers in the US trimmed their net position by 22.2 million bbls last week to 450.6 million bbls. Speculative longs were reduced by 26.02 million bbls, to 487 million bbls. Shorts also witnessed a reduction, decreasing by only 3.87 million bbls w-o-w to 36 million bbls.
Producers lifted their net position by 2.25 million bbls, an outcome of steeper declining shorts compared to longs. Longs were seen down 17.8 million bbls w-o-w to 510 million bbls, while shorts were seen down by just over 20 million bbls to 531.4 million bbls.
The Oil Research Team, EMEA
Supply Chain & Commodities Research