- Brent oil is down 0.30 percent in Asia.
- US output in 2017 increased more than Saudi Arabia.
- Oil is stuck in a symmetrical triangle pattern.
Brent oil is trading on the back foot, just below the ascending 100-day moving average (MA) of $64.70 in Asia as the as the relentless rise in US crude output keeps bulls at bay.
"US crude oil production soared past 10 million barrels per day (bpd) in late 2017, overtaking output by top exporter Saudi Arabia", according to Reuters report. Further, the International Energy Agency (IEA) now sees the US output rising above 11 million bpd by late 2018, taking the top spot from Russia.
While OPEC and its allies have almost achieved their aim of clearing an oil glut, but their efforts could be derailed by a sharp rise in the US supplies. Thus, oil prices are feeling the gravitational pull since yesterday.
The selling could gather pace if the EIA data due tomorrow shows a rise in the Us oil inventories.
Brent Technical Levels
Oil has created a symmetrical triangle on the daily chart. A break above $64.83 (Asian session high) would add credence to an upward sloping (bullish biased) 100-day MA and would open doors for $65.70 (previous day's high) and $66.00 (symmetrical triangle resistance). A close higher would signal a continuation of the rally from the February low of $61.61.
On the downside, a close below $63.90 (symmetrical triangle support) would revive the sell-off from the high of $70.79 and would allow a deeper drop to $61.61 (February low) and $61.00 (Nov. 17 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.