Oil benchmarks are being offered, with Brent now trading well below hourly 200-MA and appears on track to test 100-DMA support at $38.40 levels.
Brent down 2%
Futures currently trade 2% lower on the day around $38.75/barrel. Optimism over possibility of joint OPEC and non-OPEC effort to support price faded on Monday after Iran’s refusal to commit to output freeze led to a postponement of OPEC and non-OPEC meeting to April.
Furthermore, OPEC, via its monthly report, signaled lower demand for its oil in 2016 and said surplus will increase to 760K bpd from 720k bpd in last month's estimate.
Brent Technical Levels
The immediate support is seen at $38.40 (100-DMA), under which prices could test psychological support at $38. On the other hand, a break above $39.26 (hourly 200-MA) would expose $40.15 (hourly 100-MA).
