TDS: sell Brent on rallies
According to analysts at TD Securities, the cartel will likely leave production unchanged on today’s meeting. They suggest selling any bounces in Brent, targeting $59.50 per barrel in the near term.
The group has no incentive to cut quota at the current prices. Leaving the volumes unchanged will likely cause a large bearish move on the market: some longs will likely be liquidated. Any cut in quota will cause a very bullish move in the oil market. We’ll also focus on comments from Saudi Arabia leaders on that issue: they could give any forward price guidance.
“Overall, we look to sell any modest bounces in August-delivery Brent at $64 with target at $59.50, stop at $65 barrel”, analysts say.