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Brent Crude remains under pressure

FXStreet (Mumbai) - Brent Crude prices have recovered slightly, after having tanked to a level last seen in 2010. The oil fell more than USD 2 yesterday to hit a low of USD 87.10/barrel.

The recent slide of more than 25% in the Crude prices has raised the chatter than the Organization of the Petroleum Exporting countries (OPEC) would cut supplies in order to halt the price fall. However, OPEC’s biggest producer, Saudi Arabia, has privately told oil market participants it can accept oil prices between $80 and $90 a barrel. Kuwait's oil minister said on Sunday OPEC was unlikely to cut production to support prices.

Moreover, the markets which are in search of a bottom were taken by surprise by Saudi Arabia’s communication with the oil participants. Hence, the prices are unable to recover even though the Chinese Crude oil imports by 9.5 percent from August. If anything, the Chinese import data merely stabilized the crude prices around 2010 lows.

The Brent crude is currently trading 0.48% lower at USD 88.96/barrel. Prices had hit a high of USD 89.28/barrel earlier today.

Brent Crude Technical levels

Brent Crude has an immediate support of 87.10, below which prices can slump to 86.02 levels. Meanwhile, the prices can rally to 90.40 levels if the immediate resistance of 89.57 is taken out.

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