In an article published in late 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 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-bel we urged our readers to continue the bull call expecting Brent to form support base around $55 per barrel area.
As anticipated, Brent has taken the support of the region and In October, we extended the target for Brent from $65 per barrel to $68 per barrel. We also suggested interim profit bookings at $65 per barrel. However, Brent crude could reach our target at $68 per barrel much faster than anticipated if the ongoing crisis in the Middle East escalates to a full scale or even a semi-scale war. Saudi Arabia, Bahrain, Kuwait all have ordered their citizens to flee Lebanon, which is accused by Saudi Arabia of falling into the hands of Hezbollah. A conflict in Lebanon could spread to Iran, which is kingdom’s biggest rival in the region and to Qatar, which is currently being economically blockaded by the Kingdom and its allies like the United Arab Emirates.
Brent crude is currently trading at $64 per barrel.