Brent oil recovers losses, trades above 200-SMA

FXStreet (Mumbai) - Brent oil front month futures have recovered from the low of USD 64.69/barrel to trade at USD 65.19/barrel amid thin volumes on account of trading holidays in the Europe and US.

Back above 200-SMA

The futures now trade above its 200-SMA currently located at USD 65.06/barrel. Oil prices came under pressure earlier today as the USD index rose to two-month high following the sharp rise in the core CPI in April showed by the official data in the US on Friday.

However, crude received support from the rise in demand from Asia. Japan's customs-cleared crude oil imports rose 9.1% year on year to 3.62 million barrels per day in April, the Ministry of Finance said on Monday. Chinese imports hit a record 7.4 million barrels per day (bpd) in April.

Brent Oil Technical Levels

The immediate support is located at 65.06 (200-DMA), under which losses could be extended to the daily low of 64.69. On the other hand, a break above the daily high of 65.64 could drive the prices higher to the previous session’s high at 65.66.

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