Opinions about the oil market has been tarnished so bad in the past two months that investors are likely to be reacting to every piece of bearish news any disregarding any signs of improvement in the market.
According to analysts, Oil futures may see the light of day, but the market will continue to see only news that is pessimistic when it comes to crude oil prices until investors see a significant reduction in the global inventory.
Oil prices plunged by almost another 3 percent as the number of active oil and gas rigs in the United States have started to rise again.
According to the U.S. Commodity Futures Trading Commission last Friday, traders increased their long positions on West Texas Intermediate by 2,356 but short positions were down to 13,988 by 166,496.
Asian market climbed higher positions in the previous session as markets analyzed through the Federal Reserve Chair Yellen’s comments after her testimony in the congress.
The Japanese Nikkei slipped by 0.2 percent while Australia’s S&P/ASX 200 surged with a 1.09% increase in its index.
The Korean Kospi hit record highs as the index closed the session with a 1.11 percent climb towards positive markets, which late gained as the Bank of Korea announced it was keeping base rates at bay at 1.25 percent.
Hong Kong’s Hang Seng Index were also bullish and almost held two-year highs with a 1.09 % increase.
The Shanghai Composite in Mainland China also edged up by 0.44 percent and the Shenzhen Composite rose to trade by 0.76 percent higher.