Brent prices extended losses in the European session to trade below $40.00/barrel after the US weekly inventory data brought oversupply fears back in the limelight. Futures currently trade around $39.80 levels; down 1.56% on the day. Oil benchmarks took a hit yesterday after IEA’s Atkinson called Saudi-Russia output freeze meaningless. Furthermore, data in the US showed a sharp rise in the weekly inventory number. The combined effect convinced markets that production freeze may not be able to cure the supply-demand mismatch. Brent Technical Levels The immediate support is seen at $39.00 (zero figure + falling trend line support), under which prices could drop to $37.86 (100-DMA). On the other hand, a move back above $40 handle would expose hurdle at $41 (Mar 11 high). For more information, read our latest forex news.