Brent oil completes gap filling exercise

Brent oil prices completed the gap filling exercise as it clocked a high of $42.44 before falling back to $41.76 levels.

Prices gapped lower today as Doha talks fell apart due to rift between Saudi and Iran. Friday’s low was $42.27 and prices opened at $40.89 levels. Oil was offered in Asia to a low of $40.55 before the gap filling exercise began.

It remains to be seen if the US desks offer oil and equities turn risk averse, given the gap filling has been done.

Brent Technical Levels

The immediate hurdle is noted at $42.27 (Fri’s low), above which prices could test $43.27 (200-DMA). On the other hand, a break below $40.82 (daily low) would expose $40 levels.