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FxWirePro Call Review: Brent target revised higher to $83 per barrel

In an article published last July, named, “FxWirePro: Buy Brent crude targeting $59 per barrel on Saudi export curb and Nigerian ceiling”, available at https://www.econotimes.com/FxWirePro-Buy-Brent-crude-targeting-59-per-barrel-on-Saudi-export-curb-and-Nigerian-ceiling-821113 we recommended buying Brent crude to our readers at the then current price of $50.7 and at dips around $49 and $48.5with an initial target around $59 per barrel and stop loss at $45 per barrel.

In a subsequent article, named, “FxWirePro Call Review: Brent crude target extended from $59 to $65 per barrel”, available at http://www.econotimes.com/FxWirePro-Call-Review-Brent-crude-target-extended-from-59-to-65-per-barrel-914475 we noted, “The call is currently $5.7 per barrel in the money from the first call price and we remain optimistic about reaching the target. We can note that since our call in July, the Brent crude market has dipped further into backwardation, indicating higher supply crunch in the cash market” and extended the target for Brent to $65 per barrel with 50 percent profit booking advice at the interim target of $59.

Brent reached our initial target and declined over profit booking. In our next article, available at http://www.econotimes.com/FxWirePro-Call-Review-Brent-crude-likely-to-start-forming-support-base-below-55-per-barrel-930858 we urged our readers to continue the bull call expecting Brent to form support base around $55 per barrel area.

As anticipated, Brent had taken the support of the region and in October, and we extended the target for Brent from $65 per barrel to $68 per barrel in a subsequent article. We also suggested interim profit bookings at $65 per barrel.

In another of our review, published in mid-December, we suggested that a correction could be coming which would push the global benchmark towards $58 per barrel before it moves higher. But that hasn’t taken place, thanks to the ongoing crisis in the Middle East and protests in Iran that began in early December. Geopolitical tensions helped the oil to resume its bull-trend.

So looking at the oil market development, in our review in January, https://www.econotimes.com/FxWirePro-Call-Review-Brent-defies-short-term-correction-outlook-over-Iran-protests-maintain-long-positions-targeting-75-per-barrel-1079496 we extended our bullish target for the Brent from $68 per barrel to $75 per barrel.

And further extended that target from $75 to $81 per barrel in our April review, https://www.econotimes.com/FxWirePro-Call-Review-Brent-target-revised-higher-to-81-per-barrel-1277037

In this article, we would like to extend that target from current $81 per barrel to $83 per barrel. The extension is relatively small as we anticipate the possibility of a correction going forward. The Brent crude is currently trading at $79.6 per barrel.

 

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