Brent Oil price began the new month on a lower note, trading 51$.

The Oil price down nearly 1.4% on Monday’s session, finally closed below 200DMA with a low volume.

 

FUNDAMENTAL NEWS

  • Libya output highest since 2014

Libya’s oil production has risen above 760,000 barrels per day, its highest since December 2014, the National Oil Corporation said on Monday.

  • Reuters- Chairman Mustafa Sanalla said in a statement the NOC was working on plans to increase production further. He has previously set a goal of boosting output to 1.1 million bpd by August.
  • Chinese Manufacturing slowed in April refresh concerns over oil demand.

“The moderation in the China Purchasing Managers’ Index (PMI) could see commodity prices come under some modest pressure,” ANZ bank said in a note.

  • US. drillers added nine oil rigs last week, bringing the count to the most since April 2015, Baker Hughes said on Friday.
  • Arab News – The International Energy Agency (IEA) said in its latest monthly market report that oil stocks in industrialized countries were about 336 million barrels above the five-year average, a key indicator for OPEC.

TECHNICAL VIEW

Market participants focus on May 25th meeting, whether to extend the reduction. The market is consolidating in a tight range looking to find a bottom.

Crude oil prices trying to stabilize following two-weeks sell off.

The daily RSI indicates a higher low, downward bias likely to pause.

Support: 50.40, 50.00/49.95 and 49.50

Resistance: 51.50, 52.15 and 52.50

Bulls fell comfortable above 51.50, aims at 52/52.10 and 52.50 initially. Further strength will be available above 52.60 aims at 53.20 and 53.40$.

Fails to handle 50.40, immediate support available between 50.20 and 49.95.

We forecast the price likely to pause the fall between 50.40 and 49.95 levels. In this case, 52.10/52.50 expected initially.