Brent crude oil was unable to hold above $38.00
Yesterday the Brent crude oil made attempts to hold above $38.00, but descended during in the US session, reaching month low $37.67.
The decline in oil prices was caused by the continuation of the reaction to the statements of Saudi Arabia, and news from Iran, which stated that exports reached 2 million barrels per day. Under these conditions, the oil can leave the range, although it is possible that aggressive traders will buy oil at this area, increasing its cost.
Also, Iran has stated that it could agree to decrease the production volumes, once daily oil production will reach 4 million barrels. The fact that Iran has confirmed to participate at a meeting in Doha on 17 April confirms the readiness of the country to negotiate.
How to trade
We would buy CALL options if the Brent crude oil rises above $38.00.
Asset: Brent crude oil
Target price: 38.00
Expiry time: 20:00 GMT