Brent Oil - 50% of Oct-Nov drop has been retraced

Brent oil closed above $48.66 (50% of the Oct high- Nov low) on Monday on heightened expectations of OPEC deal.

Trades above $49.00/barrel

Oil was last seen trading around $49.30/barrel. Prices were buoyed by a renewed push by members of the Organization of the Petroleum Exporting Countries to work together to reach an output deal at the key meeting scheduled next week.

Prices were also boosted by Russia’s Putin, who said that the output deal will be reached later this month.

OPEC related news flow would continue to guide the oil prices today. Later in the day, the weekly American Petroleum Institute (API) inventory report could influence oil prices as well.

Brent Technical Levels

A break above the immediate resistance of $49.85 (61.8% Fibo) would expose hurdle at $50.10 (Sep 8 high) and $50.72 (Aug 26 high). On the other hand, a breakdown of support at $49.00 (zero figure) would open doors for a drop to $48.66 (50-DMA + 50% Fibo). Next major support is seen at $47.77 (100-DMA).