Brent update: More relief to come

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

Author

Mthokozisi Mpofu

Knars Capital

Mthokozisi Mpofu is the Managing Director of Knars Capital Pvt Ltd, an investment advisory firm helping African SMEs secure growth capital and become investor-ready.

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