Brent oil offered at $41.00, IEA driven rally runs out of steam

Brent oil prices were boosted by IEA report, but failed to chew through offers around $41.00/barrel. 

Stays above 5-DMA

The futures have trimmed gains to $40.75, but stay well above 5-DMA located at $40.40 levels. IEA monthly report released today said priced may have bottomed as non-OPEC production is falling fast. The report lit a fire under oil prices, but the momentum faded away around previous session’s high of $41. 

Moreover, investors are skeptical about a possibility of OPEC and non-OPEC members reaching production freeze accord this month, given Iran is yet to commit to production freeze. 

Brent Technical Levels

The immediate hurdle is seen at $41, above which prices could target 41.46 (Mar 8 high). A break higher would expose 42.19 (Aug 24 low). On the other hand, a break below 5-DMA at 40.40 could see prices drift lower to next support levels seen at $39.29 (Mar 8 low) and 38.82 (10-DMA).

PS: Copy signals, Trade and Earn on Forex4you - https://www.share4you.com/en/?affid=0fd9105