Brent prices fell to $39.78 levels after reports hit the wires that the planned OPEC and non-OPEC meeting may be cancelled due Iran’s reluctance to agree to production freeze. Back above 5-DMA Prices are back above 5-DMA located at 40.04 levels. Oil rose to fresh 2016 high this week on optimism major producers may reach a production freeze accord at Jan 20 meeting. In fact, traders ignored the data released in the US, which showed stocks at record highs. However, the latest report is a reality check to the markets. Moreover, Iran has repeatedly said that it is no mood to freeze production and actually called the strategy ridiculous a few weeks back. Brent Technical Levels Futures currently trade around $40.15/barrel. The immediate hurdle is seen at 40.73 (50% of Aug 31 high-Jan low), above which prices could re-test 41.14 (previous day’s high). On the other hand, a break below 5-DMA at 40.04 would shift risk in favor of a drop to 39.29 (Mar 29 low). For more information, read our latest forex news.