Oil edges higher in Asia, US rigs data in focus

Dhwani Mehta FXStreet

Oil benchmarks on both sides of Atlantic took a pause in its sell-off and corrected higher in the Asian trades this Friday as investors cheer renewed stimulus measures speculated to be rolled-out by the global central banks, after the Brexit decision.

Brent flirts with $ 50 mark

Currently, both crude benchmarks edge higher around 0.70%, with Brent at $50.06, while WTI trades near $ 48.60 levels. The black gold staged a minor-rebound after dropping almost 3% yesterday, as markets remain expectant that the global supply situation is likely to tighten, leading to higher prices going forward.

Moreover, fresh round of easing expected by markets on the back of Brexit vote, also adds to the upbeat sentiment around oil. Furthermore, oil also found fresh impetus from returning demand in the physical markets.

Analysts at ANZ bank noted, "The specter of further easing in monetary policies around the world continues to support commodity markets. With quarter-end selling also behind us, investors positioning should start to turn more bullish."

Next in focus remains the US rigs count data and ISM manufacturing PMI data for further momentum in the oil prices.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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