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11 Mar 2015
Brent oil hits one-month low
FXStreet (Mumbai) - Brent Crude fell to a one-month low USD 55.88/barrel on Wednesday due to the rally in the US dollar index and concerns of excess supply. Prices recovered post hitting one-month low to trade above USD 56.50/barrel.
Prices recovered, tracking the rise in WTI Crude after the American Petroleum Institute reported a surprise drop of 404,000-barrel on late Tuesday. Analysts had expected a 4.4-million-barrel build. Traders are now waiting for official data from the U.S. Energy Information Administration (EIA) due later today. The supply risks in Libya are also being watched, so far two east-Libyan oilfields have been shut following an attack by Islamist militants.
Brent Crude Technical Levels
The April futures currently trade at USD 56.88/barrel. The immediate resistance is seen at 58.26 (5-DMA), above which gains could be extended to 59.52 (10-DMA). On the flip side, a break below 55.72 (50-DMA) could drive prices lower to 53.90 (Feb. 11 low) levels.
Prices recovered, tracking the rise in WTI Crude after the American Petroleum Institute reported a surprise drop of 404,000-barrel on late Tuesday. Analysts had expected a 4.4-million-barrel build. Traders are now waiting for official data from the U.S. Energy Information Administration (EIA) due later today. The supply risks in Libya are also being watched, so far two east-Libyan oilfields have been shut following an attack by Islamist militants.
Brent Crude Technical Levels
The April futures currently trade at USD 56.88/barrel. The immediate resistance is seen at 58.26 (5-DMA), above which gains could be extended to 59.52 (10-DMA). On the flip side, a break below 55.72 (50-DMA) could drive prices lower to 53.90 (Feb. 11 low) levels.