Brent still shows uncertain dynamics
Brent crude oil continued to show uncertain dynamics, trading in a range of $38.85 - $40.95 during the week.
The Brent oil does not get new incentives to determine further price movement. Information received recently, is not conducive to growth. In the US the oil inventories continue to grow, however, more slowly than expected.
At the same time, OPEC countries have also increased their production. Growth is not critical - only 100 thousand barrels, but at this stage, when the market is waiting for the reduction of supply and demand imbalance, and this might be enough to accelerate the decline. Saudi Arabia maintains production levels unchanged. Iran and Iraq which have increased production volumes in general don’t plan to join the agreement on 17 April.
Today, the Brent oil is able to rise in the event of weak nonfarm data in the US data. If the data come out better than expected, the oil falls to the lower limit of the range.
How to trade
The Brent crude oil remains within the range of $38.85 - $40.95. We would buy CALL options if the Brent crude rises above $40.35. We would buy PUTs if the oil falls below $39.53.
Expiry time: 20:00 GMT