Brent oil continues to trade above the psychological level of $40
The Brent oil has made an unsuccessful attempt to go beyond the price range of $38.00 - $42.00. On Friday, the Brent could even reach the high $42.53, but failed to gain a foothold. As a result, the Brent crude closed trading at $41.46.
However, we have reasons to believe that Brent crude oil will continue to grow. We see a decline in the US crude oil stocks, a decline in oil production due to the decrease in the number of drilling rigs. These factors will push up the price of the oil.
However, most investors are waiting for a meeting in Qatar. Everyone understands that if the parties fail to reach agreement in Qatar, it will push the price below $30 per barrel.
How to trade
On Friday, the Brent crude oil was unable to gain a foothold above $42. Today, we expect the continuation of efforts to consolidate above $42. We would purchase CALL options when the price rolls back to around $41.15 and continues to rise.
Asset: Brent oil
Target price: 41.15
Close price: 41.60
Expiry time: 21:00 GMT