The survey entailed the group to interview industry professionals to gather data on what the experts believe as the concept behind the survey was basic, as there is a point when the price of oil are more than a theoretical tailwind for.
The price of oil is starting to become a sign that the global demand is reducing so rapidly, that the price has to follow.
In the survey, the most likely price of oil estimated by 26% of the participants was that of $30 per barrel, while the second highest estimate was at $35 per barrel, as the price break.
In total, more than 60% of the professionals interviewed said that if the price falls below $30 or below, would cause a major global crisis.
The majority of participants in the survey came from (purchasing-side) firms and hedge funds, while about a quarter of the population surveyed were from (selling-side), which are bankers and brokers.
March delivery on Crude Oil dropped by more than 3%, which was a fall of $1.47, reaching $46.31 per barrel on the NYME as of Thursday’s closing session prices.
In the United States, oil inventories are at an 80 year high.
A significant number of participants, (68%) have stated that they believe that oil will continue to fall, while only 20% believe that it has hit the lowest mark and will bounce back.
OPEC, the Organization of the Petroleum Exporting Countries, Abdalla el-Badri the Secretary-General, stated that he thinks that the value of oil will remain where it is for the time being, and will likely rebound.
Iran’s oil minister has recently stated, that Iran is not concerned with the possibility of $25 a barrel.
The future looks bleak for the price of oil, as the survey points that the devaluation will continue. Out of all those who were surveyed, just 8% felt that by years end that oil will be at $40 per barrel, as the majority submitted that it will more likely be between $40-60 per barrel (43%). There were (42%) of the surveyed expect the price to fall between $60-80.
A separate survey was done during the month of December when the price of oil was at $63 per barrel, and it had the majority (83%) of experts’ state that they felt that the price of oil will be greater than $60, while (47%) went as far to say that it would be above $80.
Many binary option traders will look to trade the asset as the price is set to increase in the near future. Short term trading on assets such as crude oil, are designed for binary options as profits can be made on both cases, if the price continues to fall, or even if it rebounds.