Oil at $42.70, seen falling further

Oil prices fell further on Friday with Brent trading at $42.38 per  barrel as slowing economic growth threatened to worsen ongoing oversupply of crude and refined products.

 

Brent oil slipped below a key technical support level, pulled down by rising crude and fuel inventories and a revival in US drilling.

 

While the benchmark for more than half the world’s oil has rallied more than 50% since January 20 amid supply disruptions from Nigeria to Libya, gains in global stockpiles have hurt prices recently.

 

Brent had a support close to $43 in the Fibonacci sequence, a technical indicator. The next level of support is at about $40, according to the sequence.