Brent prices dropped in Asia and extended losses in early Europe after Iran news reduced probability of joint production freeze.
Futures currently hover just above $40/barrel levels. Prices repeatedly failed to chew through offers placed around $41/barrel last week after report hit the wires that a planned OPEC and non-OPEC meeting may not happen this month unless Iran commits to production freeze.
Brent clocked a high of $40.45 before easing back to near $40 levels. Iran appears in no mood to freeze output unless it pumps at least 4 million barrels of oil per day and that could be capping the buying interest in the metal.
Brent Technical Levels
The immediate hurdle is seen at $41 (Friday’s high), above which prices could test 41.46 (Mar 8 high). A break higher would expose 42.19 (Aug 24 low). On the other hand, a break below 40 (falling trend line support) could send futures down to 39.29 (Mar 8 low) and 38.49 (100-DMA).
(Market News Provided by FXstreet)