By TRW Research,
Will 2020 FGN budget target price of US$57/bbl for Brent crude oil be broken this time ?
We think ‘YES’ in the intermediate-term, why?….Brent crude oil is almost completing a contracting triangle since 4Q2018 and once completed, we expect a strong impulsive bearish wave falling far below US$57/bbl.
Already smart commodity investors are selling off their Brent positions and this is evident in the starting of a potential 3rd wave on our Brent Crude Oil Short-Term Forecaster as shown in the attachment….Brent Oil RNVI Chart-wk-4-2020.xps
The next question is….how will FPIs react to a potential sudden sharp fall in Brent Crude Oil on the CBN OMO-bills market?….this, in our opinion, will be the defining moment on the Nigerian financial markets in 2020.