Oil rallied for the first time in six sessions last Friday with the help of much stronger than anticipated US jobs data. The improved prospects of additional US growth, increased manufacturing and employment are positive news for oil.
The market has not been shocked by Iran’s threats to close the Gulf of Hormuz or talk of the prospect of an Israeli strike on Iran during the coming months.
OPEC oil production levels are high, US gasoline demand has been reduced and Brent Crude shipments to Asia are at an eight year high.
The market appears to be coping well with the threat of an interruption in oil supplies. Last week oil remained range bound in a sideways trading pattern that has persisted for twelve weeks between 92.51 and 103.71. Gains above 98.00 early next week would help to underpin the bottom of the trading range and see the market turn its attention to 100.00 once again.
