How the oil changed its price during the month?

oilprice

Analysts Trade24 offer to your attention a common analytical material on the changes in the pricing policy for Brent crude in the period from June 21 to July 21, 2016. There will also be a brief report on the further prospects on the cost of goods in August this year. Trade24 experts noted three stages of formation, and changes in oil prices this brand. The calculation data were taken from daily technical analyzes and the an overview of the purchased capacity of customer and market trends.

The first phase is the the impact of Brexit. This period lasted from 22 to 29 June. Analysts said, that the rise in oil prices due to the effects of the decision of the UK citizens to withdraw from the European Union structures. In general, the weekly chart of trades can be clearly defined increase in the price of oil at $ 3 – from $ 47.53 to $ 50.66 for barrel.

The second phase is the the impact of API reports. This time period is from 1 July to 15 July. Company experts have underlined, that the two statements of the American Petroleum Institute on crude oil stockpiles in the storage affected the price. Traders also noted, that the cost of the goods made to drop indicators to 47,47 and 47,30.

The third stage – the price correlation. This time period covers the price movements within coefficient 1,75-2,25 per barrel. Also, the company Trade24 analysts say, that in the future oil will have a little volatility towards the end of July. Price fluctuations worth noting by the formula – the benchmark of 47 dollars for barrel makes a motion with the specified parameter.

Our traders note two possible scenarios for the pricing policy. In the first scenario, we are waiting for penetration of support at $ 47, then the oil will continue to fall to mark of 43,50-44,00. The main influencing factor will be further API reports and statements of OPEC member countries.

According to the second scenario, oil will make resistance, and the price of goods will jump to around $ 49,00-49,50. The main factors will influence the supply of raw materials reduction in Europe, as well as the reduction of oil reserves. However, our analysts are convinced, that the psychological mark of $ 50 oil is not able to breakthrough that until the mid-late August 2016.

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