During the week we should open long positions because of two reasons. Firstly, investors ignored Wednesday’s negative release on crude oil reserves of energy from the US Department . The last week of February, inventories rose by 10.37 mln. Barrels, which is the highest level for the whole winter.
So weak data had to cause a sharp decrease in quotations of black gold, but the market gave the moderate reaction to this event and after a while oil quotations resumed growth. In this regard, we can tell about a large number of buyers in the market, which build Long positions on pullbacks and do not allow to bring quotations down. Secondly, in the second half of the month (around March 20) Russia may run meeting of the world’s leading exporters of oil to stabilize the market. This will be the second meeting, I recall that the first was held on February 16 in Doha, which participated gathered delegates from Russian Federation, Saudi Arabia, Venezuela and Qatar. The second meeting is expected to be even greater. Recent negotiations between leading players gave the market the upward momentum, so we expect the same outcome from the coming meeting.
Against this background, we should open Buy positions on BRENT expecting frop of quotations to 37.70/36.30 and take profit around 39.60.
Origin: FreshForex
