Brent oil waits for Baker Hughes data today
As we predicted, Brent overcame the level of 40.99 and peaked at 41.58. According to the current pace of strengthening of the Brent oil price, it can be expected that the oil is going to reach the upper limit of the price range of 38.00 - 42.00 in the coming days.
The market has created all the conditions for Brent crude oil reaching the mark of 42.00. On the one hand, we have clearly established the date of the negotiations of the oil producers, on the other hand the weakening of the US dollar, which supports the price of the oil denominated in US dollars.
It is also worth to say some words about the official comments on the cost of oil, which also support the price. As the Minister of Qatar said that 17 April the decision to reduce the oil production can be taken without the participation of Iran.
Today, Baker Hughes will publish data on the number of drilling rigs. Last week it was the minimum since 1940. If we see a reduction in the number of drilling rigs, it will be another incentive in favor of growth.
How to trade
Today we don’t expect such an active growth in oil prices. We recommend buy CALL options after the rollback of the oil to the area of 41.30, and the announcement of Baker Hughes data.
Asset: Brent oil
Target price: 41.30
Close price: 41.46
Expiry time: 21:00 GMT