Brent oil ignores IEA’s bearish demand forecasts

Brent oil is paying little attention to Paris-based International Energy Agency’s (IEA) bearish oil demand forecasts and continues to trade with moderate losses around $43.65 levels.

Supported by key Fibo

Prices rebounded from $43.32 (May 2015 high-Jan 2016 fall), but failed to turn positive as markets believe Doha production freeze accord may not address excess supply issue.

IEA trimmed 2016 global Oil demand growth forecast to 1.16 million barrels per day. The bearish forecast comes a day after OPEC’s downward revision of the global oil demand forecasts. However, both reports are being ignored ahead of OPEC and non-OPEC meeting to be held over the weekend.

Brent Technical Levels

The immediate hurdle is noted at $44 (daily high), above which prices could target $44.90 (previous day’s high). On the other hand, a break below $43.32 (May 2015 high-Jan 2016 fall) would expose $42.51 (Mar 18 high).