Brent oil saves its price range
Yesterday, in the absence of European traders Brent crude oil made attempts to grow. The Brent could reach a high of $41, but has not found support and closed trading at $40.21.
It’s worth to note, there is no reason for the growth of the Brent oil above $41. As Reuters stated, only half of the 19 countries, invited to the meeting of oil producers in Qatar, agree to cut oil production.
The situation is not favorable to a development of events. But also, there is no reason for the sales of the oil as the market is in a state of uncertainty. Only optimists expect that the countries will take drastic measures at the meeting.
How to trade
We assume that the Brent crude oil will maintain its price range $40 - $42 today, with the potential growth to the upper range. We would buy CALL options if the Brent crude oil rises above $40.32.
Asset: Brent oil
Target price: 40.32
Expiry time: 20:00 GMT