Brent crude oil couldn’t find reasons to reach $42
Yesterday as we expected, Brent crude oil was trying to reach the mark of $42, but the efforts were unsuccessful. Yesterday, the price of Brent peaked at $41.83 and fell to $41.50 area.
The market finished reacting to a meeting of oil producers in Qatar. Peak levels were reached on Friday, and on Monday, the asset just couldn’t find the reasons for the growth.
Moreover, we don’t rule out a short-term correction before we see new attempts of the Brent to grow. It can also be caused by the return of demand for the US dollar.
It should also be noted that it became known that not all members of OPEC are going to attend the April meeting. According to OPEC Secretary-General, 15-16 members attend the meeting.
Rather, countries that are opposed to the reduction of production volumes, not to attend the meeting. Most likely, it will be Iran, which insists on its right to recover production volumes.
How to trade
Today, the most likely the Brent crude oil will slowly move to the lower boundary of the price range $40.53 - $42.36. So today we would buy PUT options from the current levels.
Asset: Brent oil
Target price: 41.70
Close price: 41.25
Expiry time: 21:00 GMT