Brent oil dips as supply outweighs demand

By FXStreet Brent oil is trading moderately lower on the day in Europe as global glut still outweighs demand.

Trades below $41

Prices clocked a high of $41.14 in the NY session, but fell back as analysts warned about a possible bull trap since falling US production and expected rise in demand will not be enough to correct the oversupply problem.

Data released yesterday in the US showed a drawdown in gasoline, but oil stocks hit another record high. However, losses in Brent are moderate as focus is on the possible production freeze accord between major OPEC and non-OPEC producers at March 20 meeting.

Brent Technical Levels

Prices currently trade around $40.66/barrel. The immediate support is located at 40.31 (hourly 50-MA), under which the futures could drop to $40 handle. On the other hand, a break above 41.14 (previous day’s high) would open doors for a re-test of 41.46 (Mar 8 high).
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Source:: FX Street