Brent oil neared March 8 high of $41.46 on the back of broad based USD selling and on optimism major producers may announce output freeze in April.
Trades above $41
Prices currently trade around $41.20, after having clocked a session high of $41.41 levels. USD is being sold across the board after Fed came out dovish. A weak dollar is making commodities costly.
Oil prices were already on the rise after having bounced off the 100-DMA support on Tuesday. Moreover, oil benchmarks are upbeat after OPEC and non-OPEC members decided to meet in April irrespective of whether Iran agrees to attend or not.
Brent Technical Levels
The immediate hurdle is seen at $41.46 (Mar 8 high), above which prices could target $42.19 (Aug 24 low). On the other hand, a break below $41 would open doors for a drop to $40.40 (previous day’s high).
(Market News Provided by FXstreet)