Brent oil continues to surrender gains, now trading just 1% on the day around USD 33.80/barrel as markets believe Iran is unlikely to agree with Saudi’s production freeze strategy. Iran unlikely to agree with immediate effect As per latest reports, Iran has agreed to production freeze once the output reaches pre-sanction levels. This means an immediate agreement appears unlikely. Meanwhile, reports are doing the rounds that Iraq is said to be ready to freeze oil production level in producers accord. Nevertheless, an accord between major producers except Iran indicates the OPEC and non-OPEC can no longer sustain lower oil prices and thus may eventually shift to production cuts. Hence, despite trimming major part of its gains, Brent has managed to stay positive on the day. Brent Technical Levels The immediate resistance is seen at 34.38 (hourly 50-MA), which if taken out shall open doors for a rally to 36.14 (Jan 29 high). On the other hand, a breakdown of immediate support at 32.97 (hourly 200-MA) would open doors for a sell-off to 32.21 (Feb 2 low). For more information, read our latest forex news.