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31 Mar 2015
Brent Crude trades below USD 55.00/barrel
FXStreet (Mumbai) - Brent crude futures trade below USD 55.00/barrel, as concerns of excess supply continues to dominate the market sentiment. A persistent strength in the USD is also weighing over prices.
Iran deal could increase supply
Brent prices extended losses as Iran and six world powers ramped up the pace of negotiations to reach a preliminary deal that could ease sanctions and allow more Iranian crude onto world markets. Moreover, Iran could increase oil production by some 500,000 barrels per day (bpd) in three to six months if sanctions are removed, thereby leading to further worsening of the supply glut situation.
Prices have also taken a hit due to the strength in the USD ahead of the monthly non-farm payrolls release. The USD index rose to 99.00 levels today, as the EUR/USD fell on Greek concerns.
Brent Futures Technical Levels
The immediate support is seen at 54.69, under which losses could be extended to 53.52. On the flip side, resistance is seen at 55.93 (hourly 100-MA) and 56.61 levels.
Iran deal could increase supply
Brent prices extended losses as Iran and six world powers ramped up the pace of negotiations to reach a preliminary deal that could ease sanctions and allow more Iranian crude onto world markets. Moreover, Iran could increase oil production by some 500,000 barrels per day (bpd) in three to six months if sanctions are removed, thereby leading to further worsening of the supply glut situation.
Prices have also taken a hit due to the strength in the USD ahead of the monthly non-farm payrolls release. The USD index rose to 99.00 levels today, as the EUR/USD fell on Greek concerns.
Brent Futures Technical Levels
The immediate support is seen at 54.69, under which losses could be extended to 53.52. On the flip side, resistance is seen at 55.93 (hourly 100-MA) and 56.61 levels.