Oil starts the new week with gains following its longest weekly losing streak in five years
Oil has entered the new week with gains following its longest weekly losing streak in five years, driven by signs that supply is beginning to outpace demand.
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Brent crude is trading above 76 dollars per barrel after seven weeks of declines, while US crude has surpassed 71 dollars. Stronger-than-expected US employment data and plans by the US to replenish its strategic petroleum reserves helped crude oil end a six-day losing streak on Friday.
IG Strategist Yeap Jun Rong stated, "Gains remain limited in the new week due to concerns over demand in China. The current price level may lead to some replenishment of the US Strategic Petroleum Reserve, but it is not yet known whether this signals a 'real' floor for oil prices."
This week, monthly reports from the International Energy Agency, the Organization of the Petroleum Exporting Countries, and the US Department of Energy are expected to provide clarity on the fundamentals of supply and demand. Investors are also closely monitoring the Fed's final interest rate decision of the year.