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Brent Crude Oil Forecast 17 Mar 2016

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Brent oil Forecast 17 Mar 2016
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Brent oil managed to recover on the back of positive factors

Yesterday, Brent crude oil was able to recover on the back of two positive factors: the meeting of OPEC and non-OPEC members in Qatar and the decline in US production volumes.

The market got news that oil producers still meet to discuss quotas April 17 in Qatar. 15 OPEC and non-OPEC members, which together produce 73% of the world's oil, will hold talks.

Despite the fact that the chance of reducing the volume is little, but a definite willingness to negotiate and regulate oversupply - is a positive sign for the Brent oil dynamics. In the future, this may stimulate the growth of the oil.

The second factor is the dynamics of the volume of commercial oil reserves in the US underground storage. EIA reported about falling production volumes by 3.7%.

All this creates conditions for the further Brent recovery to the upper boundary of the recent price range of $38.00 - $42.00 per barrel. If the Brent crude oil will rise to the top of the range, we consider testing the level 42.00.

How to trade

Today, the oil is able to overcome the resistance levels of 40.72 and 40.85, if it manages to rise above 40.99, we would buy CALL options. If the Brent oil drops below 40.57, we would buy PUT options as the next target is the mark of 40.45.

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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