The rebound in Brent from the hourly 50-MA levels appears to have run out of steam around $35.50/barrel after Saudi said it will invest to keep spare oil capacity to help meet extra demand.
Recovers from $35.06
Prices hit a low of $35.06, before turning higher although the recovery lacked momentum. Saudi Cabinet said it will work with other major producers to curb oil price volatility, but maintained readiness to invest more in order to help meet extra demand.
The recovery is also being capped by a 0.20% rise in the USD index. Talk of OPEC and non-OPEC meeting in March failed to see prices break on closing basis above the latest cyclical high of $36.14 on Friday.
Brent Technical Levels
The immediate resistance is seen at 36.14 (Jan 29 high), above which the prices could test 36.96 (Feb 26 high). On the other hand, a breakdown of immediate support at 35.17 (hourly 50-MA) would open doors for a drop to 33.56 (50-DMA).
(Market News Provided by FXstreet)