1 Mar 2016
Brent oil struggles after OPEC delegate comments
Brent futures are having a tough time moving back above $37/barrel levels after OPEC delegates reportedly hinted at a very low possibility of production cut in June.
Futures remain above key technical level
The bid tone remains intact as prices finally managed to take out key resistance of $36.14 on closing basis on Monday. Moreover, the monthly technical chart shows bullish pin bar with a long wick at support levels; a formation which indicates bullish move ahead.
However, bearish comments from OPEC delegates are capping gains in the futures around $37 levels. Oil traders now await US manufacturing data and API weekly oil inventory data release.
Brent Technical Levels
The immediate hurdle is seen at $37.37 (38.2% Of Oct high-Dec low), above which the futures could rally to 38.96 (Jan 4 high). On the other hand, a breakdown of immediate support at 36.14 (Jan 29 high) would expose 34.78 (10-MA).
Futures remain above key technical level
The bid tone remains intact as prices finally managed to take out key resistance of $36.14 on closing basis on Monday. Moreover, the monthly technical chart shows bullish pin bar with a long wick at support levels; a formation which indicates bullish move ahead.
However, bearish comments from OPEC delegates are capping gains in the futures around $37 levels. Oil traders now await US manufacturing data and API weekly oil inventory data release.
Brent Technical Levels
The immediate hurdle is seen at $37.37 (38.2% Of Oct high-Dec low), above which the futures could rally to 38.96 (Jan 4 high). On the other hand, a breakdown of immediate support at 36.14 (Jan 29 high) would expose 34.78 (10-MA).