Brent Oil Rejected at 5-DMA, Surrenders Gains
Brent oil is now trading largely unchanged on the day after prices failed to sustain above 5-DMA level of $40.88.
Oversupply concerns weigh
Concerns of excess supply made a comeback last week as oil traders realized the current rally in oil is being utilized by producers to get non-operational rigs working. Furthermore, comments from IEA officials released over the last week showed the Paris based organization sees Saudi-Russia output freeze meaningless.
Consequently, prices dropped to a low of $39.20 before ending at $40.42 levels on Thursday. Bulls attempted to regain control in amid holiday thinned trade, but lost grip at $40.97 levels.
Brent Technical Levels
The immediate hurdle is seen at 40.88 (5-DMA) – 40.97, above which prices could target 42.05 (Mar 22 high). On the other hand, a breakdown of immediate support at 40 (zero figure) and 39.20 (Thursday’s low).
(Market News Provided by FXstreet)
