Brent Oil strengthens as US oil rig count drops

March 7, 2016

Asian traders reacted to a drop in US oil rig count by sending Brent oil prices above $39/barrel levels, the highest since Dec 11, 2015.

Trades above 100-DMA

Prices are trading above 100-DMA for the first time since July 3, 2015. A Baker Hughes report released in the late NY session on Friday showed the US energy firms cut oil rigs for an 11th week in a row to the lowest level since December 2009.В 

Furthermore, investors are also focused on the possibility of OPEC and non-OPEC producers signing a production freeze accord at the planned meet on Mar 20th.В 

Consequently, both benchmarks – WTI and Brent – edged higher by at least 1.5% each.В 

Brent Technical Levels

Brent futures currently trade around $39.45/barrel. The immediate hurdle is seen at $40 (psychological figure), which if taken out could see prices test supply around $42.19 (Aug 24, 2015 low). On the other hand, a break below immediate support at 38.91 (100-DMA) could see futures drift lower to 36.14 (Jan 29 high).

Publication source
HYCM information  HYCM reviews

October 26, 2016
Revealed a larger than expected consumer confidence drop to 98.6
Asian stock markets are mostly down, with Japan a notable outperforming (closing up and indices holding on to modest gains as the Yen continued to decline against the Dollar...
October 26, 2016
AUD gains on better than expected CPI numbers
The Australian Bureau of Statistics released the consumer price index data for the third quarter. Official records showed that CPI advanced 1.3% on the year in the third quarter of 2016...
October 25, 2016
US flash Markit PMI jumped 1.7 points to 53.2 in October
Asian stock markets are mostly down, as the positive confidence indicators out of Europe and the U.S. yesterday were overshadowed by weak GDP numbers from South Korea, which weighed on most markets. Topix and Nikkei outperformed, with a weaker Yen underpinning exporters...

FxPro Rating
Vantage FX Rating
OctaFX Rating
Larson&Holz IT Ltd Rating
OANDA Rating
Grand Capital Rating

Porter Finance Rating
EZTrader Rating
TropicalTrade Rating
365BinaryOption Rating
24option Rating
OptionFair Rating