Brent oil rally stalls near magic number of $50/barrel

Brent oil is taking a breather in Asia following a five-day winning streak which pushed prices very close to the magic figure of $50.

Trades around $49.65/barrel

Prices currently trade around $49.65/barrel after having clocked a high of $49.91 yesterday. Wednesday’s rally was on the back of the decline in the US stockpiles.

The US Energy Information Administration (EIA) said Wednesday that crude stockpiles fell by 2.5 million barrels in the week ended Friday. As per WSJ survey, analysts were expecting a 5, 00,000 addition to stock piles.

The major part of the rally has been fueled by expectations that OPEC would announce a production freeze at September meeting.  

Brent Technical Levels

A break above $50 (zero figure) would open doors for $50.49 (May 26 high). On the other hand, a breakdown of support at $48.77 could yield a re-test of 10-DMA at $47.87 (Tuesday’s low).