Brent Oil Turns Red, Drops Below $44
Brent oil printed a session low of $43.85 levels even though China data showed crude imports rose to record high in March.
Rejected at $44.56
Prices turned lower from a high of $44.56 levels in a move which largely appears to be chart driven, given the bulls have enjoyed 6-day winning streak. The corrective move is underway despite bullish US API storage data and China imports figure.
The American Petroleum Institute said that crude oil stock rose 6.223 million barrels last week, while distillates stocks fell by 530,000 barrels. Meanwhile, official data showed China increased inbound shipments to 91.1 million metric tons in the first three months of the year.
Furthermore, experts believe markets have now priced-in a production freeze accord and thus profit taking may have resumed.
Brent Technical Levels
The immediate support is noted at $43.32 (23.6% of May 2015 high-Jan 2016 low), under which prices could drop to $42.52 (Mar 18 high). On the other hand, a break above $44.78 (previous day’s high) would expose rising channel resistance at $46.50 levels.