Brent crude drops as dollar recovers losses, OPEC meeting approaches
OPEC members are predicted to hold their production level at 30 million barrels per day, despite some calls for slashing production.
Although there is oversupply in the market, it seems that OPEC members are satisfied with the current price as it helps them to retain their market share.
Another key factor that weighed negatively on oil prices is the recovery in losses by the U.S. dollar against major currencies.
The dollar index rebounded from a low of 94.66 to hover around 95.40 after the release of upbeat U.S. jobless claims data.
Eyes will focus on tomorrow’s nonfarm payrolls report, which will determine whether the Fed would raise interest rate this year.
Brent crude dipped for a second straight session to trade around $62.27 a barrel, where it is struggling to remains below support at $62.30.
The breach of SMA 20, followed by the fall below SMA 50, as depicted on the daily chart helped Brent prices to drop sharply.
However, the price still trades within an upside channel, noting that the coming support could be the support line of the bullish channel.
The price is currently below the Pivot Point located at $64.18, where drop below the 50 line of the RSI 14 indicator gave some momentum.
Crude oil also slipped to trade around $58.34, falling from a peak of $59.92.