Brent oil: Bears ran out of steam around 100-DMA

Bearish momentum in Brent oil ran out of steam after prices neared 100-DMA level of $38.40, making way for a recovery to near $39/barrel levels.

Awaits API data

Traders now await US American Petroleum Institute’s (API) oil inventory data due for release later today. This would be followed by government inventory data release tomorrow. Last week’s data had shown a drawdown in gasoline, but record high stock buildup in the US.

Prices stay on the back foot despite having recovered from the daily low of $38.30 on account of bearish OPEC monthly report and falling prospects of joint OPEC and non-OPEC effort to support prices.

Brent Technical Levels

The immediate support is seen at $38.40 (100-DMA), under which prices could test psychological support at $38. On the other hand, a break above $39.26 (hourly 200-MA) would expose $40.15 (hourly 100-MA).

Bearish momentum in Brent oil ran out of steam after prices neared 100-DMA level of $38.40, making way for a recovery to near $39/barrel levels.

(Market News Provided by FXstreet)