FXStreet (Mumbai) – Crude prices rebounded more than 1% on Wednesday on reports Iran deal is unlikely before June deadline.
Brent Crude front month futures rose to a high of USD 64.62/barrel due to comments from western diplomats that a nuclear deal with Iran was unlikely by a June 30 deadline. Thus, increased Iranian supplies are unlikely to hit the markets before the year end.
Oil prices suffered sharp losses in the previous session on the back of a strong US dollar. Ahead in the day, the oil traders are likely to wait for US inventory data before making bets on oil. As per the Reuters survey, the US government data is likely to show crude inventories likely decreased by 2 million barrels last week.
Brent Crude Technical Levels
A break above 64.78 (200-DMA), could drive the prices higher to 65.38 (10-DMA). On the flip side, a break below immediate support at 63.92 (May 19 low), could push the prices lower to 63.05 (50-DMA).
(Market News Provided by FXstreet)