Brent oil retreats in Asia as oil rig count rose

Brent oil prices dipped to a session low of $45.55/barrel after the data released on Friday showed a fourth successive weekly advance in the number of oil rigs.

Hovers at two-month lows

Price trade at lowest level since May 11 despite having recovered from the Friday’s low of $45.15. The selling pressure remains intact in Asia as the latest Baker-Hughes North America overall rig count increased to 462 in the last week from 447 in the previous week.

Meanwhile, news hit the wires that Libya’s hopes to boost oil exports have been dealt a blow after the head of the National Oil Corporation (NOC) objected to a deal between the government and local guards to reopen key ports. Consequently, losses are being capped, thus leaving oil only moderately lower on the day.

Brent Technical Levels

A beak above immediate hurdle of $45.87 (June 11 low) would open doors for a test of $46.26 (5-DMA) - $46.48 (July 18 low). On the lower side, support is seen at $45.15 (previous day’s low) could yield $44.58 (Apr 14 high) - $44 (zero figure).