Brent Oil Backs Off From Daily Highs, Eyes US Supply Data
Brent prices rallied to a session high of $38.80 before it trimmed gains to trade around $38.55 levels.
Hope of bullish supply data supporting prices
Markets
expect Energy Information Administration to show a
drawdown/lesser-than-expected build in inventories, especially since the
American Petroleum Institute released yesterday showed oil inventories
in the US fell by 4.3 million barrels in the week ended April 1. Traders
were expecting an increase of 2.9 million barrels.
Still, the
bullish momentum struggled as prices closed-on $39 handle as markets
worry about falling prospect of OPEC and non-OPEC production freeze
strategy.
Brent Technical Levels
The
immediate hurdle is noted at $39.05 (head and shoulder neckline) above
which prices could test $40.05 (rising trend line hurdle). On the other
hand, a break below $38.32 (daily low) would expose $37.24 (previous
day’s low).
(Market News Provided by FXstreet)
