Brent Oil Snaps Two-Day Losing Streak
Brent oil is trading higher in Europe, putting an end to a two-day losing streak after the API data in the US showed smaller-than-expected inventory build.
Awaits US government’s inventory data
The American Petroleum Institute (API) report released in the late NY session showed US crude stocks rose last week by 2.6 million barrels to 534.4 million barrels. Meanwhile, dovish comments from Fed’s Yellen weakened the dollar and also added to the bullish tone around oil futures.
Consequently, prices recovered from the NY session low of $38.74 and are now trading around $39.60. Traders now await Energy Information Administration (inventory) figure, which is expected to show a 3.3 million barrel build, an increase to a record high for a seventh straight week.
Brent Technical Levels
The immediate hurdle is seen at $39.98 (5-DMA), above which prices could test 10-DMA hurdle of $40.58. On the other hand, a breakdown of immediate support at $38.87 (23.6% of Jan low – Mar high) would expose $38.30 (Mar 15 low).
(Market News Provided by FXstreet)
