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JPM Bullish on Oil-Related Upside Plays on RXDUSD Index

RUSSIA
  • JPMorgan is bullish on oil-related upside plays and recommends buying call spreads on the RDXUSD Russian index.
  • Brent target price for year-end is seen at $84/bbl on predictions for a switch from expensive gas to cheaper oil, analysts write in a note
  • Risk for this forecast is "skewed towards an overshoot near-term given positioning, bullish sentiment and anticipatory risks of colder winter"
  • JPM recommends buying 3-month RDXUSD 105-110% call-spread with entry level at 1.23%
  • "The entry level for the proposed, short-dated call-spreads on RDXUSD is currently trading at historically low levels"
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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