Mthokozisi Mpofu
Knars Capital
The chart below shows Brent which is now trading at $82 a barrel with the price dropping to as low as $80 a barrel. We have closed all our short positions on Brent we expect prices to be choppy and sideways for the next few weeks. We see Brent in a tight range of $78 to $82 a barrel.
On the 1st of November, the National Energy Regulator of South Africa and Zimbabwe Energy Regulatory Authority both cut prices of retail petroleum products by 3 cents on average which was much-needed relief at the pump for consumers.
We foresee another price cut to come in the next few weeks to ease the pressure of cost-push inflation currently in play from the higher Brent prices. The next major move in Brent is higher targeting $100 a barrel once price action gives us a clear sign we will post an updated analysis.
Key news events to look out for: Wednesday 15th Crude Oil Inventories
Res: 83.00; 84.00; 85.00
Sup 80.00; 79.00; 78.00
None of the material published constitutes a trading recommendation of any particular security, portfolio of securities or investment strategy. This should not be taken as personal advice concerning nature, potential, value or suitability of any particular security, portfolio of securities, investment strategy or other matter. Past performance does not guarantee future results.
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