Brent oil retreats from one-month high

Brent oil clocked a one-month high of $48.50/barrel on hopes OPEC would cut production, before retreating slightly in Asia to trade around $48.00 handle.

Eyes API data

Oil traders await the weekly estimate of crude and refined product stockpiles in the US released by the American Petroleum Institute (API). This will be followed by US government’s weekly inventory release on Wednesday.

However, expectations that OPEC would freeze/cut produce in September is likely to limit the losses even if inventory reports are bearish.

Brent Technical Levels

A break above immediate hurdle of $48.55 ()July 12 high) would expose major hurdle at $49.56 (July 7 high). On the lower side, a breakdown of support at $47.25 (50-DMA) would shift risk in favor of a drop to $46.50 (100-DMA) levels.