Brent oil clocks fresh 2016 high

Brent oil rose to fresh 2016 high of $43.46 levels on optimism major producers may reach a production freeze accord this Sunday.

Major oil producers (OPEC and non-OPEC) excluding United States are scheduled to meet in Qatar's capital Doha next Sunday. Markets expect producers to freeze output at January levels, which means the markets would still remain oversupplied by about 2 million barrels per day.

The optimism surrounding the meeting Doha is likely to keep prices well supported ahead of the US API weekly inventory data due for release later today.

Brent Technical Levels

Immediate resistance is seen at $44.79 (Dec 4 high), above which prices could test hurdle at $46.47 (Nov 25 high). On the other hand, a break below $42.52 (Mar 18 low) would expose $41.48 (5-DMA).