Brent oil clocks fresh 2-month high

Brent oil rose to a fresh 2-month high of $51.72 on the back of a drop in the US inventories and OPEC’s efforts to curb output. 

Eyes 200-DMA

Prices look set to test offers around the 200-DMA level of $51.87. Prices have rallied close to 6% following the conclusion of the OPEC and non-OPEC meeting in St Petersburg on Monday. 

The data released earlier this week showed the US crude stocks fell sharply by 7.2 million barrels in the week to July 21 due to strong refining activity and an increase in exports. 

he 200-DMA hurdle could be breached of the Baker Hughes data due at 17:00 GMT shows a drop in the US oil rig count. Traders would also keep an eye on potential US sanctions on Venezuela's oil sector.

Brent Oil Technical Levels

A break above $51.87 (daily 200-MA) would open doors for $52.58 (May 29 high) and $52.76 (Apr 4 low). On the lower side, breach of support at $51.30 (higher low at 1-hour chart) could yield a pullback to $50.00 (1-hour 100-MA) and $49.52 (1-hour 200-MA). The 1-hour RSI is close to being overbought again.