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27 Mar 2015
Brent oil drops below USD 58.00/barrel
FXStreet (Mumbai) - Brent futures hit a session low of USD 57.86/barrel on Friday, as worries of a disruption to crude supplies due to Saudi Arabia-led air strikes in Yemen eased.
Rejected by Key Fibo level
Prices failed to sustain above the USD 58.77, which is the 23.6% Fib retracement of USD 45.16-62.96 move. A stronger USD and easing of supply concerns weighed over prices. Goldman Sachs said in note that the strikes in Yemen would have little effect on oil supplies as the country was only a small crude exporter and more importantly the oil tankers could avoid passing through its waters.
Brent Crude Technical Levels
The immediate resistance is seen at 58.77, above which gains could be extended to 59.73 levels. On the flip side, a break below the 50-DMA at 57.69, could drive the prices lower to the 100-DMA at 57.19.
Rejected by Key Fibo level
Prices failed to sustain above the USD 58.77, which is the 23.6% Fib retracement of USD 45.16-62.96 move. A stronger USD and easing of supply concerns weighed over prices. Goldman Sachs said in note that the strikes in Yemen would have little effect on oil supplies as the country was only a small crude exporter and more importantly the oil tankers could avoid passing through its waters.
Brent Crude Technical Levels
The immediate resistance is seen at 58.77, above which gains could be extended to 59.73 levels. On the flip side, a break below the 50-DMA at 57.69, could drive the prices lower to the 100-DMA at 57.19.