Oil traders and speculators could be the “mother of all buying opportunities” for WTI crude in December, with oil prices set to drop further in the coming days, said CNBC’s Jim Cramer. . To tell.
Oil prices have fallen so far this month. Fears of a recession and a surge in the coronavirus outbreak in China are weighing on market sentiment despite the European Union’s impending embargo on seaborne imports of Russian crude oil.
Earlier Wednesday, Brent crude traded at $85 a barrel, below US benchmarks at $80. $78 a barrel after reports emerged that the EU is now discussing a price ceiling for Russian oil $65-$70does not really cap the price of Russian crude, which is trading at a discount of $20 a barrel against Brent anyway.
Citing chart analysis by Carley Garner, co-founder and analyst at Decarley Trading, CNBC’s Cramer said: s, or even in the mid $60s. Once we get there, she believes it will be the mother of all buying opportunities. “
Analysts say WTI crude usually hits big drops on or around Thanksgiving Day, with lower trading volumes around the holiday and an OPEC meeting that always takes place at some point in late November or early December. exacerbated by
“Historically, some of the most devastating oil declines occurred on or around Thanksgiving,” Kramer said Tuesday.
Oil prices may rebound after that, but a potential crash and volatility in oil prices between Thanksgiving and early December could be a big buying opportunity, according to Jim Cramer.
Earlier this week, investment bank Goldman Sachs Oil price forecast cut by $10 to $100 per barrel in the fourth quarter, citing lockdowns in China that dampened demand for the commodity.
By Josh Owens of Oilprice.com
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