Crude oil prices edged higher on Friday and continue to trade higher on Monday morning on data that showed the number of oil rigs operating in the US for the week ending Dec. 15, dropped for the first time in six weeks.
On the other side, The International Energy Agency (IEA) in its monthly oil market report, published on Thursday, revised upward its projection for US oil production, warning that total supply growth could exceed demand growth in the months ahead.
Rising US oil production comes with OPEC compliance deal to cut production which reached its highest level this year, rising to 115%.
The ongoing Forties pipeline shutdown during the previous week drove oil prices higher, as market participants expect 40% of the North Sea oil and gas flows to remain closed for weeks.
Technical view
Crude Oil Daily chart has formed a “Symmetrical triangle” pattern. The trend remains bullish as prices retested the channel’s support slope line near $56.50.
As per the technical aspects of the pattern, a retest is expected to push the market furthermore and the rally could test $58-$58.50 levels and further in the upcoming sessions. Resistance holds at $58.50 and Support holds at $56.