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16 Mar 2015
Brent oil recovers losses
FXStreet (Mumbai) - Brent Crude recovered losses to trade largely unchanged for the day despite a potential agreement in nuclear talks with Tehran opened the prospect of more Iranian exports, should sanctions be eased.
Weak USD triggered recovery?
Brent futures could have recovered from the low of USD 53.71/barrel to trade at USD 54.83/barrel, mainly on account of weakness in the greenback. The US dollar has been offered since the Asian session today, which has pushed the USD index lower by 0.49% to 100.23. The sustained weakness in the USD could further push Brent prices higher. However, it remains to be seen how long the USD is offered ahead of the FOMC meeting scheduled later this week.
Prices had dipped earlier today as the prospect of an increase in Iranian oil sales as part of a new agreement would only add to the existing oversupply.
Brent Crude Technical Levels
The immediate resistance is seen at 55.16, above which the May futures could rise to 56.35 levels. On the flip side, a break below 53.71 could drive the prices lower to 51.55 levels.
Weak USD triggered recovery?
Brent futures could have recovered from the low of USD 53.71/barrel to trade at USD 54.83/barrel, mainly on account of weakness in the greenback. The US dollar has been offered since the Asian session today, which has pushed the USD index lower by 0.49% to 100.23. The sustained weakness in the USD could further push Brent prices higher. However, it remains to be seen how long the USD is offered ahead of the FOMC meeting scheduled later this week.
Prices had dipped earlier today as the prospect of an increase in Iranian oil sales as part of a new agreement would only add to the existing oversupply.
Brent Crude Technical Levels
The immediate resistance is seen at 55.16, above which the May futures could rise to 56.35 levels. On the flip side, a break below 53.71 could drive the prices lower to 51.55 levels.