Oil prices were stable during Monday’s Asian session, remaining just below last week’s levels after data showed a slight decrease in the number of U.S. rigs drilling for new production, bringing the total down by 5 rigs to 742. U.S. WTI futures were up 0.18 percent to $61.55 per barrel while Brent crude futures were up 0.13 percent to $67.71 per barrel as of 2:51 p.m. HK/SIN. Nevertheless, analysts are bracing themselves for a shift downward, if and when U.S. production breaks through 10 million barrels per day, a milestone expected to be reached fairly soon due to increased output from shale drillers. If production keeps rising, prices may flounder despite OPEC’s production cuts and continued efforts to control oil prices.
Global Stocks Head Towards Decade Highs
Asian stocks were broadly higher on Monday after Wall Street ended higher on Friday, showing the strongest yearly start in a decade. On Friday the Dow closed up 2.3 percent for the week and the S&P 500 closed up 2.6 percent for the week. The Nasdaq enjoyed the steepest gains, closing up 3.4 percent for the week, despite payroll data that missed forecasts. Australia’s ASX 200 was up 0.13 percent to near ten-year highs, South Korea’s Kospi was up 0.63 percent and the Shanghai Composite was up 0.24 percent in the early afternoon in Asia. Japanese markets were closed for bank holidays on Monday but were successful in reaching highs last week not hit since 1992.
The next fundamental challenges to the markets will be U.S. consumer prices and retail sales data out on Friday and Chinese December inflation reports due out Wednesday.