Brent Oil Strengthens, Ignores Iran Oil Minister’s Comments
Brent oil regained poise and clocked a fresh session high of $38.83
levels as traders ignored comments from Iran oil minister which indicate
rise in oil supply in near future.
Eyes US supply data
That
Iran is planning to boost its daily output to 4 million barrels per day
is already a well known fact. Hence, comments from Iran oil minister
did not trigger a fresh sell-off in oil. Nevertheless, this underscores
the fact that oil supply glut is here to stay for a long time.
The
focus now shifts to US government’s weekly inventory data. The API data
released yesterday showed a surprise drawdown; hence traders are
bracing up for a surprise bullish report.
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)
