Oil hammered in US session, Brent drops below $39/barrel

By FXStreet US desks hit oil benchmarks with fresh offers, sending prices lower by more than 3.5%.

Brent oil printed a session low of $38.80, before recovering slightly to trade around $39 levels; down 3.35% on the day. WTO oil fell almost 4.4%.

Oil sell-off began in Asia after reports hit the wires Iran is in no mood to freeze output and intends to bulk up its production by 1 million barrels per day to 4 million barrels per day.

Iran’s refusal to commit to output freeze reduced the odds of major producers signing output freeze agreement. Selling pressure intensified further on talks the OPEC and non-OPEC meeting has been postponed to April. The meeting was originally to be held on March 20.

Brent Technical Levels

Brent futures currently trade around $39.18 levels with immediate hurdle seen at $40, above which prices could test $41 (Friday’s high). A break higher would expose $41.46 (Mar 8 high). On the other hand, a break below $39.00 could send futures down to $38.49 (100-DMA) and $38.00 levels.
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Source:: FX Street