1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

Brent Oil strengthens as US oil rig count drops, investors anticipate production freeze

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    Asian traders reacted to a drop in US oil rig count by sending Brent oil prices above $39/barrel levels, the highest since Dec 11, 2015.

    Trades above 100-DMA

    Prices are trading above 100-DMA for the first time since July 3, 2015. A Baker Hughes report released in the late NY session on Friday showed the US energy firms cut oil rigs for an 11th week in a row to the lowest level since December 2009.

    Furthermore, investors are also focused on the possibility of OPEC and non-OPEC producers signing a production freeze accord at the planned meet on Mar 20th.

    Consequently, both benchmarks – WTI and Brent – edged higher by at least 1.5% each.

    Brent Technical Levels

    Brent futures currently trade around $39.45/barrel. 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.
     

Share This Page