4 Feb 2016
Brent oil strengthens as Iran exports rise slower than expected
FXStreet (Mumbai) - Brent oil prices strengthened in Asia, extending sharp gains seen in the previous session on the back of a weaker USD and a possible OPEC deal to cut production.
The futures currently trade 54 cents or 1.54% higher around USD 35.55/barrel. The speculation about a possible OEPC meeting or OPEC and non-OPEC meeting to cut production continues to support prices.
Meanwhile, data released by the Israeli maritime data analytics company Windward showed Iranian floating storage fell just 5.4 million barrels since sanctions were lifted just recently. This indicates the country is slow to move the oil out of the country.
Brent Technical Levels
The immediate resistance is seen at 36.29 (50-DMA), above which the prices could target 37.11 (23.6% of May 2015 high-Jan 2016 low). On the other hand, a break below the 5-DMA at 34.68 could open doors for a drop to 33.49 (10-DMA).
The futures currently trade 54 cents or 1.54% higher around USD 35.55/barrel. The speculation about a possible OEPC meeting or OPEC and non-OPEC meeting to cut production continues to support prices.
Meanwhile, data released by the Israeli maritime data analytics company Windward showed Iranian floating storage fell just 5.4 million barrels since sanctions were lifted just recently. This indicates the country is slow to move the oil out of the country.
Brent Technical Levels
The immediate resistance is seen at 36.29 (50-DMA), above which the prices could target 37.11 (23.6% of May 2015 high-Jan 2016 low). On the other hand, a break below the 5-DMA at 34.68 could open doors for a drop to 33.49 (10-DMA).