Oil prices rose on Monday, but gains were minimal as investors gauged whether an increase in U.S. drilling and record stockpiles would undermine efforts by producers to cut output and bring the market into balance.

Brent futures were up 1 cent at $55.82 a barrel at 0050 GMT, while U.S. West Texas Intermediate crude rose 3 cents to $53.43 a barrel.

U.S. energy companies added oil rigs for a fifth consecutive week, extending a nine-month recovery with producers encouraged by higher crude prices, which have traded mostly over $50 a barrel since late November.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, agreed last year to cut output almost 1.8 million barrels per day (bpd) during the first half of 2017.

Estimates indicate compliance with the cuts is at around 90 percent, additionally OPEC could extend the pact or apply deeper cuts from July if global crude inventories fail to drop enough.

But rising U.S. output helped boost crude and gasoline inventories to record highs last week, amid faltering demand growth for the motor fuel.

Hedge funds and other money managers raised their net long U.S. crude futures and options positions in the week to Feb.14 to a new record high, data from the U.S. Commodity Futures Trading Commission (CFTC) showed on Friday.

The increase in long positions leaves the market vulnerable to a downward correction.

The U.S. market will be closed on Monday for the Presidents Day holiday.



WTi 4hr

Price is trading in a range and currently at the top of the range around WM3 - bears sell zone for the week. I'd go into smaller TF and look for selling opportunity.

WTi 1hr

I'd look to go short somewhere at the break of the trendline around 54 psych level with target at WM1 - 53.00

Brent 4hr

Brent have somewhat a similar price action where price is trading in a range, however Brent have some more room to trade higher before trading into top of the range.

Brent 1hr

On the hourly, price action seems like it could make one leg higher before the sell. I'd look to get in on the sell somewhere around 57.00 psych level with target at WS1 55.00

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