The rapid growth of the dollar could send Brent crude to $ 20 - shares his outlook Stanely Morgan - Materials AMarkets.
Oil under pressure from the strong dollar could fall by 10-25% in the case USD will increase its value by 5%. Global instability could send black gold below $ 60. But it is a factor of the dollar - the same force that keeps the raw material in the range of $ 35-55 or less - says the expert.
The range of $ 20- $ 25 is quite real for oil. The US dollar and non-fundamental factors continue to drive the price of oil. Last week, oil prices moved down on the volatility in the Chinese economy, which is sent down assets around the world. 3.2% retracement USD strength and a 15% devaluation of the RMB may push oil prices even at 6-15%.
If the currency of commodity economies will also fall - the fall of the oil price can be even more profound.