26 Mar 2015
Brent oil pares 50% of its gains
FXStreet (Mumbai) - Brent prices have erased almost 50% of its gains after rising as much as 5% on the news Saudi Arabia and its allies begun air strikes in Yemen.
Strong USD weighs
The rally triggered by the geopolitical tensions could not be extended further as the US dollar made a strong comeback against the major currencies in the early US session. Consequently, Brent futures eased from a high of USD 59.73/barrel to trade at the current level of USD 57.58/barrel.
Moreover, analysts also feel the sharp rise over the last 24 hours on the Yemen news was a bit of an overreaction.
Brent Crude Technical Levels
The immediate support is seen at 57.33 (100-MA), under which losses could be extended to 56.78 levels. On the flip side, resistance is seen at 58.06 (Feb. 24 low), above which gains could be extended to the daily high of 59.73.
Strong USD weighs
The rally triggered by the geopolitical tensions could not be extended further as the US dollar made a strong comeback against the major currencies in the early US session. Consequently, Brent futures eased from a high of USD 59.73/barrel to trade at the current level of USD 57.58/barrel.
Moreover, analysts also feel the sharp rise over the last 24 hours on the Yemen news was a bit of an overreaction.
Brent Crude Technical Levels
The immediate support is seen at 57.33 (100-MA), under which losses could be extended to 56.78 levels. On the flip side, resistance is seen at 58.06 (Feb. 24 low), above which gains could be extended to the daily high of 59.73.