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Oil prices rebound as some see last week’s selloff as ‘overdone’
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Loading...Oil futures rose at the start of the week, rebounding from declines on Friday amid a stronger U.S. dollar and persistent oversupply worries.
Still, the main point of concern for investors is rising U.S. production. Data from the U.S. Energy Information Administration showed U.S. production increasing to nearly 9.34 million barrels a day last week.
Friday’s updated rig count from Baker Hughes Inc. also point to production increases. Oil producers added seven more rigs to their working fleet, rising to 763, up more than double from the 351 at work a year ago.
“In the short term, oil prices may remain under pressure because of the U.S. glut in supplies. But the medium term is looking much better because I expect market rebalancing will kick in by late 2017 or early 2018,” said Gananasekar Thiagarajan, director of Commtrendz Risk Management.
Source: Bloomberg
Junior Trader Stefan Panteleev
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