Brent oil: gains short-lived, back in the red

FXStreet (Mumbai) – The moderate gains in the Brent oil prices seen in the early US session proved to be short-lived as prices fell into losses for the fourth consecutive session.

Bearish crossover between hourly 50-MA and 200-MA

The slide witnessed today is in line with the bearish crossover between the hourly 50-MA and 200-DMA seen now at 44.86 and 44.96 levels. The futures made a failed attempt to take out the hourly 200-MA earlier today following which fresh offers came-in.

The OPEC source was on the wires expressing a possibility of oil price falling USD 35/barrel. This added to the bearish pressure on Brent prices and pushed them to a session low of USD 44/barrel. The traders now await the US American Petroleum Institute (API) weekly inventory data due in the US.

Brent Technical Levels

At USD 44.19/barrel, the immediate support is seen at 44.00, under which the prices could tank to 43.57 (Nov 23 low). On the other side, previous day’s low of 44.44 could offer resistance, which, if taken out could see prices re-test hourly 200-MA at 44.95.

The moderate gains in the Brent oil prices seen in the early US session proved to be short-lived as prices fell into losses for the fourth consecutive session.

(Market News Provided by FXstreet)