18 Jan 2016
Brent Oil: Gaps filling over, back below $29
FXStreet (Mumbai) - Brent oil prices did a gap filling exercise and headed back below USD 29/barrel as fears of oversupply continue to dominate market sentiment.
Rejected at $29.55
Prices clocked a high of USD 29.55/barrel and filled the gap created by opening lower today at USD 28.11. Prices gapped lower in Asia after Western powers lifted Sanctions placed over Iran. Traders believe this will worsen the supply glut, while Iran official said it will boost production by 500kbpd.
Hence, the prices fell back below USD 29/barrel and currently trade around USD 28.65/barrel. Prices could remain under pressure and may take a hit in Asian session tomorrow if the Chinese GDP and industrial production figures disappoint market expectations.
Brent Technical Levels
The immediate resistance is seen at 29.00, breach of which could take the futures higher to 29.94 (Jan 13 low)-30.00. On the other side, support is seen at 27.96 (hourly chart support), under which the pair could revisit 27.69.
Rejected at $29.55
Prices clocked a high of USD 29.55/barrel and filled the gap created by opening lower today at USD 28.11. Prices gapped lower in Asia after Western powers lifted Sanctions placed over Iran. Traders believe this will worsen the supply glut, while Iran official said it will boost production by 500kbpd.
Hence, the prices fell back below USD 29/barrel and currently trade around USD 28.65/barrel. Prices could remain under pressure and may take a hit in Asian session tomorrow if the Chinese GDP and industrial production figures disappoint market expectations.
Brent Technical Levels
The immediate resistance is seen at 29.00, breach of which could take the futures higher to 29.94 (Jan 13 low)-30.00. On the other side, support is seen at 27.96 (hourly chart support), under which the pair could revisit 27.69.