The price of oil needs to be incentives for growth
On Friday, oil prices traded in a moderate recovery, but at the end trading five-day week again dipped for the third straight week. Brent cannot return above the level 78 and in the morning session on Monday trying to take the path of least resistance down, although the pressure still looks moderate.
The sell-off in global stock markets continues. On Friday, the drawdown of American indices has prevented the barrel to move higher, but today quotes crushes declining Asian benchmarks, which threatens to spread to Europe.
Meanwhile, according to Baker Hughes, last week the number of drilling rigs operating in the United States increased by 2 units, to a new high of March 2015. As an indicator of future production, the rate involves the increasing production of shale deposits in the coming weeks, the market will be closely monitored.
From a technical point of view, to improve the short-term mindset, Brent needs to break through $ 78. The longer the asset remains below this level, the higher the risk of developing more aggressive bearish pullback. In the short term the price growth potential will likely be constrained by the unwillingness of investors to take risks.
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