Brent oil rebounded from 100-DMA support of $38.90, but the bullish momentum is running out of steam as futures near daily high set earlier today at $39.47 levels. Hovers around Dec 15 high Futures currently hover around $39.38/barrel (Dec 15 high). Oil prices strengthened in Asia after Baker Hughes report on Friday showed another drop in the US oil rig count. Speculation is also on the rise that OPEC and non-OPEC producers may reach a production freeze accord in March. Still, the gains are being capped on account of a 0.40% rise in the USD index. Brent Technical Levels The immediate hurdle is seen at $40 (psychological figure), which if taken out could see prices test supply around $42.19 (Aug 24, 2015 low). On the other hand, a break below immediate support at 38.91 (100-DMA) could see futures drift lower to 36.14 (Jan 29 high). For more information, read our latest forex news.