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23 Feb 2016
Brent falls back to $34 after Iran calls output freeze ‘ridiculous’
As per Shana news reports, Iran called Russia-Saudi output plan ridiculous and said it is unrealistic to expect Iran to cut production.
Oil traders responded to the comments by sending oil benchmarks lower. Brent is back in losses, currently trading around $34.22/barrel; down 1.5% on the day.
Prices found bids around 50-DMA earlier today and rose as high as $35.08 before comments from Iran pushed them lower.
Iran was never expected to support the production freeze strategy. Nevertheless, prices rallied last week after Russia-Saudi agreed to freeze production at January levels and asked other major producers to do the same
Brent Technical Levels
The immediate resistance is seen at 34.94 (previous day’s high), above which prices could rise to 35.71 (Feb 18 high). On the other hand, a breakdown of immediate support at 33.78 (50-DMA) could see prices drop to 33.17 (10-DMA).
Oil traders responded to the comments by sending oil benchmarks lower. Brent is back in losses, currently trading around $34.22/barrel; down 1.5% on the day.
Prices found bids around 50-DMA earlier today and rose as high as $35.08 before comments from Iran pushed them lower.
Iran was never expected to support the production freeze strategy. Nevertheless, prices rallied last week after Russia-Saudi agreed to freeze production at January levels and asked other major producers to do the same
Brent Technical Levels
The immediate resistance is seen at 34.94 (previous day’s high), above which prices could rise to 35.71 (Feb 18 high). On the other hand, a breakdown of immediate support at 33.78 (50-DMA) could see prices drop to 33.17 (10-DMA).