Oil (and seemingly everything lese) is getting a good beginning to the week.

Says ING in a morning note:

  • Clearly the fundamentals in the market are improving

But:

  • we continue to believe that the market is rallying too much too soon, with the risk that further strength will only prolong the supply and demand imbalance.

Main points:

  • Baker Hughes data on Friday continued to show a collapse in US drilling activity
  • this week regulators in North Dakota will discuss the potential for production quotas on Wednesday.
  • Saudi Arabia and Kuwait have decided to suspend output at the Khafji field in the neutral zone in June, according to media reports. This follows both countries last week announcing deeper output cuts for June
Oil (and seemingly everything lese) is getting a good beginning to the week.