16 Mar 2016
Brent ignores talk of OPEC & non-OPEC meeting in April
Brent oil is having a tough time extending gains above $39 handle even though news about the possible OPEC and non-OPEC meeting in April hit the wires.
Rejected at $39.23
Prices rose to a high of $39.23 earlier today after API’s weekly report showed lower than expected crude build up in the US. However, futures failed to extend gains and fell back below $39 as inventories were still higher for the seventh consecutive week.
Furthermore, reports hit the wires that OPEC and non-OPEC could meet in April, irrespective of whether Iran commits to production freeze or not. But, oil benchmarks have not reacted positively, with Brent now trading around $38.90/barrel.
Brent Technical Levels
A breakdown of immediate support at $38.31 (100-DMA) would expose 38.06 (23.6% of Jan low-Mar high). On the other hand, a break above $39.23 (daily high) could see prices test offers around $40 (psychological figure).
Rejected at $39.23
Prices rose to a high of $39.23 earlier today after API’s weekly report showed lower than expected crude build up in the US. However, futures failed to extend gains and fell back below $39 as inventories were still higher for the seventh consecutive week.
Furthermore, reports hit the wires that OPEC and non-OPEC could meet in April, irrespective of whether Iran commits to production freeze or not. But, oil benchmarks have not reacted positively, with Brent now trading around $38.90/barrel.
Brent Technical Levels
A breakdown of immediate support at $38.31 (100-DMA) would expose 38.06 (23.6% of Jan low-Mar high). On the other hand, a break above $39.23 (daily high) could see prices test offers around $40 (psychological figure).