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Brent Could Drop to $42 per Barrel

On Thursday morning oil was correcting after a fall on Wednesday. Yesterday’s close saw Brent on December contracts stand at $45.80, with WTI (December delivery) at $42.96. Today Brent on December contracts is going for around $45.92, with December’s WTI at $43.10 per barrel.

The fall has come about due to negative American Oil Institute data which showed a rise in US reserves of 6.3 million barrels last week. We reckon that the weak growth today will switch into a fall. The US’ EIA will give its version of the report tonight and it’s likely that the data will confirm what was published yesterday.

Brent is looking to head to $42 per barrel and test a local minimum. We recommend investors be prepared for this.

Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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