Brent crude oil closed last week’s session in the red. On Friday night, bulls were able to break the key level of $63.0. It has been an unbeatable limit for buyers for the past 2 trading weeks. At the beginning of the new week, a retest of this level has been formed, so the movement is expected to go up to the zone of $64.0-64.3 per barrel.
The Friday’s breakout of $63.0 and 2% growth occurred amid comments by U.S. Secretary of Commerce Wilbur Ross. His statement reinforced the market expectations about signing phase one of the trade agreement with China. Later at the weekend, the Ministry of Trade of the PRC announced a “constructive” telephone conversation between two parties.
On Friday, oil service company Baker Hughes published data on the number of active rigs drilling for oil in the United States. Last week, the number of active rigs decreased by 10 units to 674 units. This is the fourth consecutive decline.