Technical analysis: Oil price will drop to 47.7 USD a barrel

Baku. 3 August. REPORT.AZ/ Cost of Brent crude oil in the world market has dropped to 51 dollars per barrel. Despite the persistence of prices at the level of 52.5 dollars per barrel, the sale of futures contracts continued.

Report informs, investors predict a further reduction in prices for Brent crude. So, investors fear most of decision of the Federal Reserve rate hike in September, as a result of which US dollar will strengthen and commodity prices to continue to fall. For this reason, investors have already started to sell futures contracts at low prices.

Technical analysis shows that, price for Brent crude oil will fall to its lowest level 47.68 dollars per barrel, fixed January 12, 2015.

In the long term, oil price will not go up from the current level of prices, cost will fall to 36.2 dollars per barrel. This is reflected in the chart long oil prices. In 2004, oil was sold at the price of 36.2 dollars per barrel, which is the lowest level in 11 years.