Brent oil extended losses as dollar selling in the US session failed to support prices that are being hurt by oversupply concerns.
Prints eight-day low
Prices fell to an eight-day low of $38.98 levels. The selling gathered pace in early Europe as production freeze accord between major producers is not seen balancing the oversupplied markets.
Meanwhile, data in the US due today and tomorrow is expected to show inventories clocked another record high.
The futures currently trade around $39.20 levels. Dollar selling may have helped stall the sell-off but has surely not helped reverse the trend in the prices.
Brent Technical Levels
The immediate hurdle is noted at 39.62 (previous day’s low), above which prices could rise to 40.36 (5-DMA). Conversely, a breakdown of immediate support at 38.76 (falling trend line support) would expose 38.30 (Mar 15 low).
(Market News Provided by FXstreet)