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8 Feb 2016
Brent oil: Recovers to hourly 200-MA
Brent oil futures recovered from the daily lows, but prices appear stuck around the hourly 200-MA resistance located at USD 33.90 levels.
Odds of production cut drop further
The meeting between Saudi and Venezuela over the weekend failed to reach a “productive” conclusion and that indicated markets that a joint OPEC and non-OPEC production cut is far easier said than done.
Hence, the European desks responded by sending prices to an intraday low of USD 32.93. Both benchmarks had inched higher in Asia amid holiday-thinned trade.
Brent Technical Levels
Prices currently trade around USD 33.60/barrel. The immediate support is seen at 32.93 (daily low) under which the losses could be extended to 32.21 (Feb 2 low). On the other hand, a break above 33.90 (hourly 200-MA) could see the prices re-test the daily high of 34.65.
Odds of production cut drop further
The meeting between Saudi and Venezuela over the weekend failed to reach a “productive” conclusion and that indicated markets that a joint OPEC and non-OPEC production cut is far easier said than done.
Hence, the European desks responded by sending prices to an intraday low of USD 32.93. Both benchmarks had inched higher in Asia amid holiday-thinned trade.
Brent Technical Levels
Prices currently trade around USD 33.60/barrel. The immediate support is seen at 32.93 (daily low) under which the losses could be extended to 32.21 (Feb 2 low). On the other hand, a break above 33.90 (hourly 200-MA) could see the prices re-test the daily high of 34.65.