Brent Oil takes a breather, money flow index above 80.00

Brent oil retreated in Asia following a four-day winning streak that pushed the monthly flow Index into overbought territory (above 80.00).

API stock pile build weighs

The moderate losses in the Brent could be due to the bearish American Petroleum Institute (API) data released overnight. Even though crude stocks fell, gasoline supply jumped by about 2.2 million barrels for the week ended Aug 12.

Markets have been fearful of gasoline glut permanently derailing the recovery/rebalancing of the oil market. The focus today is on the US government’s weekly oil inventory report.

Brent Technical Levels

Brent oil was last seen trading 33 cents or 0.70% lower around $48.87/barrel. A break below immediate support $47.85 (5-DMA) would expose 50-DMA at $47.19. On the other hand, breach of resistance at $49.33 (previous day’s high) would shift risk in favor of a rally towards $50.00. The money flow index has is above 80.00, whcih usually is followed by a trend reversal.