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Brent Crude Oil Forecast 21 Mar 2016

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Brent Crude Oil Forecast 21 Mar 2016
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Brent oil continues to trade above the psychological level of $40

The Brent oil has made an unsuccessful attempt to go beyond the price range of $38.00 - $42.00. On Friday, the Brent could even reach the high $42.53, but failed to gain a foothold. As a result, the Brent crude closed trading at $41.46.

However, we have reasons to believe that Brent crude oil will continue to grow. We see a decline in the US crude oil stocks, a decline in oil production due to the decrease in the number of drilling rigs. These factors will push up the price of the oil.

However, most investors are waiting for a meeting in Qatar. Everyone understands that if the parties fail to reach agreement in Qatar, it will push the price below $30 per barrel.

How to trade

On Friday, the Brent crude oil was unable to gain a foothold above $42. Today, we expect the continuation of efforts to consolidate above $42. We would purchase CALL options when the price rolls back to around $41.15 and continues to rise.

Asset: Brent oil
Direction: Call
Target price: 41.15
Close price: 41.60
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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