Oil breaks below the 40.00 level

Even though light crude oil retraced yesterday to the upside, the 41.19 level has acted as a resistance and today oil bounces to the downside and breaks below the 40.00 level to make a daily low around the 39.59 level. Amid the latest meetings by the OPEC members, there are no real fundamental reasons for oil to stage a sustainable rally and that is why it remains weak. Below the 40.00 level, the 39.00 level could act as its next support. To the upside, the 41.19 level could continue acting as resistance.