Over the past day the oil market has seen the following changes in the positions of market participants:
According to CME Group data, open interest on put/call contracts remained virtually unchanged compared to yesterday and amounted to 1.380 (yesterday the ratio was 1.383).
Today the open interest on oil contracts is 1167186 for call options, and 8846086 for put options. But the put/call volume ratio has changed more noticeably: yesterday it was 0.989, today it has grown to 1.089. It can be assumed that the prices have some support in the market and in case the price goes down these movements will probably be bought back.
Contracts for difference on Brent today also have more chances for growth, with the buy/sell ratio averaging 65/35.
Yesterday, at the close of the US session, the American Petroleum Institute (API) released updated data on weekly US crude oil inventories, which amounted to 0.914 million barrels. Last week, inventories stood at 2.264 million barrels. Such a decrease is not significant, but still provides some support to prices on the world oil market, including Brent.
Also today, after the opening of the US session, the weekly data on US crude oil inventories and excessive oil stockpiles will be published, which will have an impact on the oil prices.
As a result, it can be concluded that the positive Brent price growth sentiment prevails on the market, but the risk of a medium-term downward price correction still remains.
The final recommendation is to buy Brent with a limit order when the price falls to the level of $84.25 per barrel.
The profit could be fixed at the level of 84.8. The Stop loss could be placed at 84.0.
It’s suggested to limit the trading volume to no more than 2% of your deposit funds.
