Sorry, you need to enable JavaScript to visit this website.

Brent Crude Oil Forecast 22 Mar 2016

You are here

Brent Crude Oil Forecast 22 Mar 2016
5/5 of 2 ratings

Brent crude oil couldn’t find reasons to reach $42

Yesterday as we expected, Brent crude oil was trying to reach the mark of $42, but the efforts were unsuccessful. Yesterday, the price of Brent peaked at $41.83 and fell to $41.50 area.

The market finished reacting to a meeting of oil producers in Qatar. Peak levels were reached on Friday, and on Monday, the asset just couldn’t find the reasons for the growth.

Moreover, we don’t rule out a short-term correction before we see new attempts of the Brent to grow. It can also be caused by the return of demand for the US dollar.

It should also be noted that it became known that not all members of OPEC are going to attend the April meeting. According to OPEC Secretary-General, 15-16 members attend the meeting.

Rather, countries that are opposed to the reduction of production volumes, not to attend the meeting. Most likely, it will be Iran, which insists on its right to recover production volumes.

How to trade

Today, the most likely the Brent crude oil will slowly move to the lower boundary of the price range $40.53 - $42.36. So today we would buy PUT options from the current levels.

Asset: Brent oil
Direction: Put
Target price: 41.70
Close price: 41.25
Expiry time: 21:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

You may also read