Brent Oil Drops on Saudi’s Hardline Stance
Oil prices dropped, with Brent now trading well below $40 handle after Saudi’s crown price said his nation would freeze output only if Iran and other nations do so.
Rejected at 10-MA
Futures were rejected at 10-DMA level of $40.42 following which prices retreated to $40 levels. Further losses were triggered after Saudi’s hardline stance hit the wires. Another report showed OPEC is planning to address supply glut issue without reducing or freezing output.
However, markets are unconvinced about the effectiveness of these measures. Hence, oil contracts are being offered. Across the pond, WTI is trading 2.27% lower at $37.50/barrel.
Brent Technical Levels
Brent currently trades around $39.50; down 1.88% on the day. The immediate support is seen at $39.25 (rising trend line support), under which losses could be extended to $38.92 (23.6% of Jan low-Mar high). On the other hand, a break above $39.80 (5-DMA) above which prices may have a re-look at $40.42 (10-DMA + daily high).
(Market News Provided by FXstreet)