In late July – early August, crude oil resumed its downtrend again. In particular, the prices crashed all the way down to January’s lows. The price of a barrel of Brent oil is now fluctuating around $49-$50, which is twice as cheap as 12 months ago.
At the same time, the prices crashed even though Iran hasn’t still gone back to the market as a major oil exporter. At this point, experts are at odds over whether the period of ultra-low oil prices is going to last for weeks or month… or maybe even years. It is interesting to note that during his recent visit to Moscow, the Secretary General of OPEC promised that oil prices would find the bottom soon and stabilize in late 2015 – early 2016.
At the same time, some oil companies do not share this optimism. For example, Royal Dutch Shell fired 6 500 employees following a dramatic decline in quarterly earnings – 37% or $3,8 billion. Not so long ago, the company’s experts released a long-term prediction, which says that oil prices are not going to recover up to $90/b until 2020.
At the same time, the CEO of Shell assumes that ultra-low oil prices my well last for a couple of years. They are not 100% sure about that but the comprehensive analysis of the current situation says that there is not point in expecting for any recovery in the coming years while the price may crash even further.
Meanwhile, the SRP Department of Masterforex-V Academy says that the market of Brent oil is still dominated by the bears. The big-scale bearish target is now sitting at $16,56!!! However, the latest bearish move is of reactional nature, which lead us to believe that the bearish move – wave B – is going to be completed soon as the price advances further up within the scope of wave C in the ABC pattern of a complex big-scale consolidation move.
