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Brent Crude Oil Forecast 24 Mar 2016

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Brent Crude Oil Forecast 24 Mar 2016
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Crude oil inventories data pushed the Brent oil price down

Brent crude oil behaves as we predicted. After an unsuccessful attempt to gain a foothold above the upper boundary of the price range, the price showed downward correction.

The Brent oil has shown a sharp decline on a back of the increase in US crude oil inventories. The oil reserves 3 times exceeded the forecasts. The crude oil inventories rose by 9.357 million barrels against the forecast of 3.090 million. This was the main factor in the fall.

We assume that the correction of the Brent crude oil prices will continue for another few days. We do not exclude that the price will try to fall below $39 per barrel. However, achieving this price level will be considered by investors as a good chance to resume buying.

Most investors tend to believe that the price of the oil has already passed its bottom. New attempts of the price to descend are the good chances to enter the market.

How to trade

Today, the price will continue to respond to yesterday's data on the oil reserves, so we would buy PUT options from the current levels.

Asset: Brent oil
Direction: PUT
Target price: 40.34
Close price: 39.77
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.

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