Brent oil drops below $33 as production freeze optimism fades

24 February, 2016

Brent prices extended losses in Asia to a session low of $32.66/barrel as Iran’s criticism of Saudi-Russia production freeze dampened hopes of a more coordinated action by OPEC and non-OPEC producers. 

Rejected at $35.08

Prices turned lower from $35.08 levels seen in the early US session after Iran called production freeze strategy as ridiculous and added that expecting Iran to follow suit is unrealistic. Furthermore, Saudi said a production cut is unlikely to happen, leaving markets wondering whether a joint OPEC and non-OPEC effort could indeed happen. 

The bearish pressure strengthened further after the American Petroleum Institute (API) figure showed an inventory buildup. Prices currently trade around $32.82/barrel. 

Brent Technical Levels

The immediate resistance is seen at 33.66 (50-DMA), above which the prices could re-test Monday’s high of 34.94. On the other hand, a breakdown of 32.66 (Feb 19 low) would open doors for a slide to 31.79 (Feb 17 low).


Source link  
EUR sluggish in recent weeks

EUR has also been surprisingly soft in light of the convincing win by French President Macron...

EUR/USD sinks to session lows

The single currency is now losing the grip vs. the buck, sending EUR/USD to test the area of daily lows in the 1.1240/30. Spot met extra downside pressure...

Euro is consolidating below the 1.1300

In view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair still points to some consolidation...


Dollar Index rebound looks plausible

In view of the analysts at Societe Generale, the Dollar Index correction appears to have come...

Oil closed strongly

Oil prices rallied after the EIA weekly report showed gasoline inventories declined the most at this time of the year for at least five years. Stocks dropped 3.26 million barrels to 238.2 million barrels. The market was also buoyed by a fall in US oil production, down 55kb/d to 8.46mb/d last week...

Gold hovering around 3-week high

Gold on Wednesday traded in a narrow band but maintained its bid tone and is hovering around 3-week high level touched on Tuesday to currently trade around $1364 region...


US Dollar weaker, finds support at 97.00

The greenback, tracked by the US Dollar Index, is now picking up some pace after finding some support in the 97.00 neighbourhood...

Gold rises to a four-week high

After hitting a four week high level of $1284 during early late Asian early European session, Gold prices remained bouyant for fourth session in a row and are currently holding steady around $1282 level...

Gold pauses after hitting three-week high level

Gold is seen retracing a bit from a 3-week high level of $1266 touched during Asian trading session on Thursday and is currently trading with only a marginal cut, at $1261...

  


Share: