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Brent: Is this a false rally?

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Brent continues its rally this Monday after moving above USD 60 last week. Saxo's Ole Hansen says it's being driven by signs that the oversupply glut in the North Sea has lifted a little. He also points out that the situation in Libya is continuing to deteriorate which is adding some support to Brent.

But it's a different story for WTI where in the US supply continues to rise even though the oil rig count has fallen around 30% in three months. Production levels are at their highest since 1982. Hansen says more than three billion dollars have been invested in the energy sector this year already.

Hansen says up towards USD 63.50 will see resistance support in Brent and that if there is a move below USD 59 "we could be talking about a false rally".