7 Apr 2015
Brent Crude drops more than 1%
FXStreet (Mumbai) - Brent prices dropped more than 1% on Tuesday after Iranian officials visited Beijing to push for more oil sales after reaching a nuclear deal in the last week.
Moreover, a nuclear deal has opened doors for more Iranian supplies, although analysts believe it would take months before Iranian exports take-off. Meanwhile, Oil prices also suffered due to report from the investment bank Goldman Sachs, which said prices need to remain low for months in order to slow US output. The investment bank sees little upside for its USD 40/barrel forecast over the next three months as inventories would likely rise again by October, pressuring prices into 2016.
Apart from the Iran-China talks, Oil markets would also watch out for the weekly oil inventory data released by the American Petroleum Institute (API) later today.
Brent Crude Technical Levels
The immediate resistance is seen at 57.88 (50-DMA), above which prices could rise to 58.20 levels. On the flip side, a break below the daily low of 56.99 could drive prices lower to the 100-DMA located at 56.13.
Moreover, a nuclear deal has opened doors for more Iranian supplies, although analysts believe it would take months before Iranian exports take-off. Meanwhile, Oil prices also suffered due to report from the investment bank Goldman Sachs, which said prices need to remain low for months in order to slow US output. The investment bank sees little upside for its USD 40/barrel forecast over the next three months as inventories would likely rise again by October, pressuring prices into 2016.
Apart from the Iran-China talks, Oil markets would also watch out for the weekly oil inventory data released by the American Petroleum Institute (API) later today.
Brent Crude Technical Levels
The immediate resistance is seen at 57.88 (50-DMA), above which prices could rise to 58.20 levels. On the flip side, a break below the daily low of 56.99 could drive prices lower to the 100-DMA located at 56.13.