Brent oil strengthens, trades above $30.50

By FXStreet FXStreet (Mumbai) – Brent oil recovered losses to trade around USD 30.60/barrel in a move which appears to be chart driven since concerns of excess supply stay intact.

Kuwait calls for joint OPEC and non-OPEC effort

Kuwait officials earlier today reiterated Saudi’s stance that OPEC along cannot cut production at a time when non-OPEC members are pumping more oil. Similar comments have repeatedly hit the wires this month and hence did not have any impact on oil prices.

Iraq sees higher oil price in H2

Meanwhile, Iraqi oil minister said Russia, & Saudi Arabia are now more flexible on oil output cuts and said his nation would cut output if other agree to do the same. He added further that oil price could rise to USD 50/Barrel in H2.

Iraqi oil minister’s comments appear to have supported oil prices; however, Saudi kingdom has maintained it needs non-OPEC members to cut production.

Brent Technical Levels

The immediate resistance is seen at 31.04 (hourly 50-MA), above which the prices could rise to 32.14 (Jan 7 low). On the other hand, a break below 29.80 (10-DMA) would open doors for a drop to 27.96 (Jan 18 low).
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Source:: FX Street