Brent oil stays in red in Europe

By FXStreet Brent futures remain weak in Europe as investors consider the impact of slowdown in the economic activity in China.

Stuck at 50% Fibo

Oil prices failed to sustain above $40.78 (50% Fibo of Sep high-Jan low) after Chinese exports and imports fell sharply, raising concerns regarding the demand for oil from the world’s largest consumers.

Prices currently trade around $40.35/barrel; slightly above the daily low of $40.17. Kuwait oil minister was on the wires stating readiness to freeze output, if other producers agree. However, the comments failed to provide any impetus to oil prices.

Brent Technical Levels

The immediate resistance is seen at 40.78 (50% of Sep high-Jan low), above which futures could test 41.01 (previous day’s high). On the other hand, a break below 38.96 (Jan 4 high) would open doors for a slide to 35.96 (Dec 22 low).
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Source:: FX Street