Oil drops in Asia after three-day Easter break

Oil prices on both sides of the Atlantic dropped this Monday morning in Asia following a three-day Easter break as investors digest North Korea’s failed missile launch. 

At the time of writing, WTI Oil was down 46 cents or 0.86% at $52.72/barrel. Brent Oil was down 48 cents or 0.86% at $55.41/barrel.  

US oil rig count at highest level in 2 years

Investors could be reacting to the Baker Hughes data released last week, which showed the number of active oil rigs in the US hit its highest level since April 2015. The rig count rose for the 13th straight week, taking the total count to 683. 

Geopolitical risks may support prices  

Despite North Korea’s failed missile launch, the standoff between US and North Korea continues. Consequently, the dips in the prices could be short lived.