17 Mar 2015
Brent Crude drops as supply concerns take center stage
FXStreet (Mumbai) - Brent prices fell below USD 53.00/barrel on Tuesday, trading at its lowest level since early February, as the concerns of excess supply took center stage.
The possibility of a nuclear deal with Iran and the following rise in the Iranian exports brought the issue of supply glut into the spotlight. Markets are already worried about the rising stocks in the US and increasing Libyan production. Libya's oil production is reported to have risen to 489,000 barrels per day after the restart of the El-Feel and Wafa oilfields.
Brent Crude is down from the session high of USD 54.31 to trade at USD 52.94/barrel.
Brent Technical Levels
The immediate support is seen at 52.46, under which losses could be extended to 50.57 (Jan. 15 high). On the flip side, resistance is seen at 53.09 (Feb. 11 low), above which gains could be extended to 54.31 levels.
The possibility of a nuclear deal with Iran and the following rise in the Iranian exports brought the issue of supply glut into the spotlight. Markets are already worried about the rising stocks in the US and increasing Libyan production. Libya's oil production is reported to have risen to 489,000 barrels per day after the restart of the El-Feel and Wafa oilfields.
Brent Crude is down from the session high of USD 54.31 to trade at USD 52.94/barrel.
Brent Technical Levels
The immediate support is seen at 52.46, under which losses could be extended to 50.57 (Jan. 15 high). On the flip side, resistance is seen at 53.09 (Feb. 11 low), above which gains could be extended to 54.31 levels.