Energy futures are hovering above Friday’s settlement this morning, WTI and Brent futures showing modest gains of about 15 cents per barrel after each benchmark logged gains of about 5% last week.
Money managers, also referred to as “smart money”, closed out of their short oil positions last week. Net positions rose in both European and American oil futures, supporting intentions of continuing the rally into a second week.
Baker Hughes reported 2 additional oil rig restarts last week, bringing the total to 765; over twice the number of rigs running a year ago this week. This marks the 27th consecutive rise in operating oil production platforms.
RBOB futures hopped over an important technical barrier on Friday and has a little room to run before it is tested again, the $1.58 level will provide a little pushback. WTI and HO futures have a similar amount of room before running into pivotal technical levels, peg $48 per barrel for crude and $1.55 for diesel.