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1 Jun 2015
Brent Crude falls as OPEC output stays high
FXStreet (Mumbai) - Brent crude prices fell on Monday as the Organization of the Petroleum Exporting Countries (OPEC) production rose to a 2.5 year high in May and the US dollar rose against the basket of currencies.
Reuters monthly survey showed the OPEC pumped at a two-and-a-half year high of 31.22 million barrels of oil per day (bpd) in May. Meanwhile, the US dollar index gained 0.3% during the European session, making oil costly in non-US dollar terms.
Consequently, the front month Brent futures dropped 1.11% or 72 cents to USD 64.83/barrel. Prices had jumped sharply on Friday, its biggest rally in a month, on a larger-than-expected rig count data in the US.
Brent Crude Technical Levels
The immediate support is located at 64.77 (10-DMA), followed by a support at 64.25 (200-DMA). On the flip side, a break above the daily high of 65.43 could see the futures target of 66.50.
Reuters monthly survey showed the OPEC pumped at a two-and-a-half year high of 31.22 million barrels of oil per day (bpd) in May. Meanwhile, the US dollar index gained 0.3% during the European session, making oil costly in non-US dollar terms.
Consequently, the front month Brent futures dropped 1.11% or 72 cents to USD 64.83/barrel. Prices had jumped sharply on Friday, its biggest rally in a month, on a larger-than-expected rig count data in the US.
Brent Crude Technical Levels
The immediate support is located at 64.77 (10-DMA), followed by a support at 64.25 (200-DMA). On the flip side, a break above the daily high of 65.43 could see the futures target of 66.50.