Brent oil struggles for direction as glut concerns persist

22 March, 2016

Brent oil is having a tough time in deciding which way to go as traders are worried production freeze by major producers will not be enough to counter excess supply situation.

Hovers around $41.40

Prices are trading around $41.40; largely unchanged on the day. The rise in US rig count number showed by Baker Hughes report on Friday reminded markets about the supply glut issue. Moreover, the data indicated that oil rigs do not expect prices to rise further and thus are utilizing the current spike to hit market with more supply. 

Consequently, markets are worried the pickup in China’s imports and possible production freeze accord between major OPEC and non-OPEC producers will not be enough to counter excess supply. 

Brent Technical Levels

The immediate hurdle is seen at 42.19 (Aug 24 low) followed by a resistance at 43.13 (Nov 16 low). A break higher would expose 44.00 (psychological hurdle). On the other hand, a break below support at 40.78 (50% Fibo of Jan low-Mar high) would expose 39.50 (trend line support) and 38.05 (100-DMA).


Source link  
USD: Fed being a little more hawkish

The dollar picked up over the past week, and this continued to be in reaction to a Fed that is being a little more hawkish...

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...

  


Share: