Brent oil backs off from daily highs, eyes US supply data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    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).
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