Brent Oil trims losses, back above key support

FXStreet (Mumbai) – Brent futures trimmed losses to trade well above the key support of USD 31.16, but prices are still down 2% on the day.

Calls for emergency meeting ignored

OPEC secretary general was on the wires expressing the need for a OPEC and non-OPEC talks to solve the oil stock overhang. However, the markets have not paid much attention to the el-Badri’s calls. Moreover, it is well known that Saudi will be ready to cut output only if the non-OPEC suppliers agree to the same.

As of now, the futures are trading around USD 31.40/barrel. Oil prices remain a main factor determining the risk sentiment in the financial markets.

Brent oil Technical Levels

The immediate resistance is seen at 31.57 (hourly 5-MA), above which the prices may test 32.00. On the other hand, a break below 31.16 (strong support on the hourly chart) could see the prices drop to hourly 50-MA at 30.38.

Brent futures trimmed losses to trade well above the key support of USD 31.16, but prices are still down 2% on the day.

(Market News Provided by FXstreet)