Oil prices somewhat recovered last Friday. However, oil, in fact, finished the week in the red – the decline had been recorded for the third week in a row.
Brent oil keeps trying to hit the 78 handles and move further. For now, the price stands at some $77. 67, after softening during the morning trading.
The global stock markets still face selloffs. Specifically, the price upturn in the oil market was restrained last Friday by the US indexes collapse. At the same time, lower Asian benchmarks that can spread to the European markets put pressure on oil on Monday already.
As reported Baker Hughes, the operating drill rigs rose by another 2 units in the USA. Thus, this increase indicates a possible upturn in the production of shale oil to take place in the next few weeks. The players will keep eyes open with such development of the situation.
Brent prices technically have to break the 78 handles to improve short-term sentiments. Specifically, the longer quotes stand below this line, the higher threat of more aggressive plunge.
Speaking about the near term, a price upturn will probably be restrained by investors' reluctance to risk.