FTSE 100 Slides On Brent Crude Oil Price Slump
- The FTSE 100 traded lower following a sharp drop in Crude oil prices after no accord at Sunday’s oil production meeting in Doha.
- The multi-week trend remained bullish, but the price has quickly given back parts last week’s gains.
- There are no FTSE 100 market movers on deck today.
Today, the FTSE 100 (CFD: UK100) was down by 0.73% at the time of writing.
The FTSE 100, which had already turned lower on Friday following uncertainty as to the outcome of Sunday’s oil production meeting in Doha, saw a 0.73% slide this morning, after no accord at the meeting.
Because of no deal, Brent crude oil prices (CFD: UKOIL), were trading lower by 4.2% from Friday’s close and have dragged down the share price of energy firms in Asia. The CFD UK100 was lower today as traders were most probably anticipating the same outcome for FTSE 100 energy companies.
The crude oil meeting, which brought together nations representing about half of the world’s crude oil output, met to discuss an oil production freeze. However, the meeting ended without an accord, as the business press reported that the biggest producer, Saudi Arabia, did not want to agree to any deal unless it included Iran. Iran, which was not present at the meeting, have said that they will aim to increase their production to pre-sanctions levels and are therefore not interested in participating in a crude oil production freeze.
Despite today’s FTSE100 slide and the fact that it is quickly giving back last week’s gains, the FTSE 100 maintains a bullish bias in the multi-week perspective. The trend is bullish as the last significant swing low of the daily chart, the April low of 6060, is higher than the preceding low of March 10 at 6006. A potential support level could be the March 18 high, which previously acted as a resistance level, and the April 11 swing low of 6163.
There are no FTSE 100 market movers on deck today.
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FTSE 100 | FXCM: UK100
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.