Brent oil surrenders gains, but stays above $30/barrel

By FXStreet FXStreet (Mumbai) – Brent oil surrendered gains to trade largely unchanged on the day around USD 30.15/barrel as markets price-in increased prospects of a fresh Iranian supplies.

Rejected at $30.55

Prices saw a largely chart driven recovery from USD 29.69; lowest level since 2004. However, the technical recovery ran out steam at USD 30.55/barrel.

The US inventory data released on Wednesday added to the bearish pressure on oil prices. The Energy Information Administration reported that the country’s crude-oil inventories rose to 482.6 million barrels last week, near an eight-decade high reached in April.

Meanwhile, increased possibility of a rise in the Iranian oil exports is also capping gains in oil prices.

Brent Oil Technical Levels

The immediate resistance is seen at 30.55, above which the prices could target 31.89 (previous day’s high and strong resistance on the hourly chart). On the other hand, a break below 30.00 could see the prices re-test multi-year low of 29.69.
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Source:: FX Street