Brent oil managed to recover on the back of positive factors
Yesterday, Brent crude oil was able to recover on the back of two positive factors: the meeting of OPEC and non-OPEC members in Qatar and the decline in US production volumes.
The market got news that oil producers still meet to discuss quotas April 17 in Qatar. 15 OPEC and non-OPEC members, which together produce 73% of the world's oil, will hold talks.
Despite the fact that the chance of reducing the volume is little, but a definite willingness to negotiate and regulate oversupply - is a positive sign for the Brent oil dynamics. In the future, this may stimulate the growth of the oil.
The second factor is the dynamics of the volume of commercial oil reserves in the US underground storage. EIA reported about falling production volumes by 3.7%.
All this creates conditions for the further Brent recovery to the upper boundary of the recent price range of $38.00 - $42.00 per barrel. If the Brent crude oil will rise to the top of the range, we consider testing the level 42.00.
How to trade
Today, the oil is able to overcome the resistance levels of 40.72 and 40.85, if it manages to rise above 40.99, we would buy CALL options. If the Brent oil drops below 40.57, we would buy PUT options as the next target is the mark of 40.45.
Expiry time: 21:00 GMT