Brent gains on US inventory drop

FXStreet (Mumbai) – Brent crude advanced on Friday after the data in the US on Thursday showed US inventories fell for a fourth straight week.

Prices set for a weekly drop

Brent prices rose to a high of USD 63.38/barrel after the Energy Information Agency (EIA) data released in the US showed crude oil inventories fell by 2.8 million barrels last week, down for the fourth week.

However, prices are still set for a weekly drop as futures currently trade well below the previous week’s close of USD 65.50/barrel. The futures ran into offers at the 50-DMA located at USD 63.20 levels.

Investors now await the OPEC’s June 5 semi-annual meeting in Vienna. The group is widely expected its production quota unchanged.

Brent Crude Technical Levels

The immediate resistance is seen at 63.29 (50-DMA), above which gains could be extended to 64.00 levels. On the flip side, a break below 62.76 could drive the prices lower to 61.94 levels.

Brent crude advanced on Friday after the data in the US on Thursday showed US inventories fell for a fourth straight week.

(Market News Provided by FXstreet)