Brent oil retreats on profit taking

Brent oil prices are trading weak in Asia as investors take profits ahead of month end/quarter end closing.

At the time of writing, Brent was trading moderately lower on the day around $49.60/barrel. Prices clocked a high of $49.80 earlier today.

Oil prices surged in the previous two trading days after the OPEC producers caught markets off guard by agreeing to a framework to cut production. The deal is likely to be approved officially at November meeting.

Experts believe a marginal cut in production would not be enough to help rebalance oil markets; nevertheless it is good news for financial markets that have been rocked by fresh banking crisis in Europe.

Brent Technical Levels

Immediate support is seen at $49.07 (hourly chat support), under which prices could extend slide to $47.94 (hourly 50-MA). On the higher side, breach of $50.00 (psychological level) would open doors for a re-test of $51.02 (weekly 100-MA).