Investors don’t know to buy or sell Brent crude oil
The uncertainty of the price of Brent crude behavior suggests that investors may not realize the price is overbought or oversold now. The movement of the oil price within the price range of $41.26 - $41.68 and sharp price changes just confirm this.
Yesterday, we received news that Libya will not attend the meeting in Doha scheduled for April 17th. This put pressure on the price of Brent crude oil yesterday.
We already wrote that, most likely, if the country does not want to attend the meeting, it means that it is not prepared to reduce oil production. Iran has demonstrated such a position.
However, when the price of Brent tried to descend below $41, the buyers started to buy, which pushed the price above $41.
Yesterday Nigeria and Iran have also confirmed their participation in the meeting on 17 April.
Today, the US Department of Energy will publish data on crude oil inventories. The forecast assumes an increase. If the forecast is confirmed, the oil will try to fall below $ 41.
How to trade
We would buy PUT options if the price falls below $41.42.
Asset: Brent oil
Target price: 41.42
Close price: 41.35
Expiry time: 21:00 GMT