26 May 2015
Brent oil trades around USD 65.00/barrel
FXStreet (Mumbai) - Brent futures fell to around USD 65/barrel on Tuesday, pressured by the strength in the US dollar and due to the possibility of US shale investment booming again.
Prices drop as US rig drop stalls
The Baker Hughes data released on Friday showed US producers cut the number of rigs by just one last week. The concerns of rebound in US production increased further after the investment bank Goldman Sachs said prices were at a level that would spur activity.
Meanwhile, the USD index strengthened to a high of 97.24, thereby making commodities expensive in non-dollar terms. Consequently, Brent futures clocked an intraday low of 64.82/barrel before recovering to the current level of USD 65.19/barrel.
Brent Technical Levels
A break below the immediate support of the daily low at 64.82 could drive the prices lower to 64.00 levels. On the flip side, a break above 66.18 could push the prices higher to the next hurdle at 66.83.
Prices drop as US rig drop stalls
The Baker Hughes data released on Friday showed US producers cut the number of rigs by just one last week. The concerns of rebound in US production increased further after the investment bank Goldman Sachs said prices were at a level that would spur activity.
Meanwhile, the USD index strengthened to a high of 97.24, thereby making commodities expensive in non-dollar terms. Consequently, Brent futures clocked an intraday low of 64.82/barrel before recovering to the current level of USD 65.19/barrel.
Brent Technical Levels
A break below the immediate support of the daily low at 64.82 could drive the prices lower to 64.00 levels. On the flip side, a break above 66.18 could push the prices higher to the next hurdle at 66.83.