Note: Our price target was hit on 18.11.2016
Crude Oil options (Dec 16) has gone down close to 14% just in two weeks from $50 to $42, trading at $43.19 at the moment. In the last two weeks US oil inventories came significantly high comparing to the estimates. This obviously doesn’t help with the price.
So shall we expect further drops on the Crude Oil price?
We believe lower $43 levels are suitable for buying. We may see further drops but it will be very limited. Our target price is $46 for Crude Oil Dec 16 options.
Once our target is met, we will update our analysis.
This cannot be considered an investment advice!!