11 Mar 2016
Brent oil offered at $41.00, IEA driven rally runs out of steam
Brent oil prices were boosted by IEA report, but failed to chew through offers around $41.00/barrel.
Stays above 5-DMA
The futures have trimmed gains to $40.75, but stay well above 5-DMA located at $40.40 levels. IEA monthly report released today said priced may have bottomed as non-OPEC production is falling fast. The report lit a fire under oil prices, but the momentum faded away around previous session’s high of $41.
Moreover, investors are skeptical about a possibility of OPEC and non-OPEC members reaching production freeze accord this month, given Iran is yet to commit to production freeze.
Brent Technical Levels
The immediate hurdle is seen at $41, above which prices could target 41.46 (Mar 8 high). A break higher would expose 42.19 (Aug 24 low). On the other hand, a break below 5-DMA at 40.40 could see prices drift lower to next support levels seen at $39.29 (Mar 8 low) and 38.82 (10-DMA).
Stays above 5-DMA
The futures have trimmed gains to $40.75, but stay well above 5-DMA located at $40.40 levels. IEA monthly report released today said priced may have bottomed as non-OPEC production is falling fast. The report lit a fire under oil prices, but the momentum faded away around previous session’s high of $41.
Moreover, investors are skeptical about a possibility of OPEC and non-OPEC members reaching production freeze accord this month, given Iran is yet to commit to production freeze.
Brent Technical Levels
The immediate hurdle is seen at $41, above which prices could target 41.46 (Mar 8 high). A break higher would expose 42.19 (Aug 24 low). On the other hand, a break below 5-DMA at 40.40 could see prices drift lower to next support levels seen at $39.29 (Mar 8 low) and 38.82 (10-DMA).