Wealth Monitor April 2016 | Page 30

ENERGY | Rebound While crude oil is expected to trade with a positive bias, fresh longs should be avoided at elevated levels, says Dharmesh Bhatia, Manager Commodities Market, Emirates NBD Securities L 28 ast month, the international benchmark Brent crude jumped by 5% and quoted at $37 while the US benchmark WTI (West Texas Intermediate) reached at the peak of $34.69. However, later this rally was supported by fundamentals and prices rallied further. Major upheaval in prices has been witnessed so far during the current year. The Brent was dropping to a 12 year-low of $27.10 a barrel in January before embarking on an uneven recovery. Daily swings of more than 7% have been recorded on four occasions in February alone. Between 2012 and 2013, when oil averaged close to $100 a barrel, there was only one trading day when Brent moved 7% over the entire period. In the second of weak of March, 5% jump was witnessed with assumption about supply crunch in the global market because of disruptions in the pipelines of Iraq and Nigeria. The stoppage in the pipeline of Turkey cut off about 600,000 www.wealth-monitor.com | April 2016