Brent oil trades below 5-DMA for the first time in five days

Brent oil is trading below 5-DMA for the first time since November 30. 

Prices retreated from one-year highs on speculation that OPEC members may cheat on new quotas. 

Brent prices clocked a high of $55.30/barrel on Monday on OPEC deal optimism, however profit taking and concerns that OPEC may not follow the agreement pushed prices down to $53.48. The losses were extended to $53.33 levels. 

Oil traders await the weekly US government report, which could show a rise in the inventories. The data is of particular importance going forward as it would indicate if the Shale producers are taking advantage of the higher oil prices by producing more. 

Brent Technical Levels

Prices were last seen trading around $53.50/barrel. A break above $53.92 (5-DMA) would open doors for a re-test of $54.47 (Dec 2 high). On the other hand, a breakdown of support at $53.11 (Oct 19 high) would expose support at $51.97 (Oct 24 high) and $51.19 (Aug 19 high).