Selling Brent to $69 per barrel

Brent crude oil closed the bearish price gap, which appeared back on March 3 at $72 per barrel. After closing the gap, the prices of Brent crude oil may face reverse downward momentum, as the power moving the prices to the target has run out. 

From the fundamental point of view, further development of the bearish trend in the oil market is supported by the possibility of OPEC+ increasing its production in May. 

OPEC+, which controls more than 40% of the world’s oil output, will stick to its plan to increase the production for the second consecutive month. The organization intends to boost the oil output by 135,000 barrels per day in May. 

It is going to be the second monthly increase as a part of the plan of rolling back production cuts, which the group has imposed since 2022. The group is simultaneously trying to raise the quotas for its members that have been meeting the objectives and is pressing other producers that exceeded the quotas to cut the output and produce oil below the quotas for some time. 

OPEC+ reduced its oil production by 5.85 million barrels per day, which is about 5.7% of the global supply. The group agreed on a series of actions starting 2022 to support oil prices.

In addition, the oil is still under pressure due to uncertainty about the scope of the US import tariffs and to what extent the trade war will slow down the global economy’s growth and reduce the aggregate demand for energy.

The overall recommendation is to sell Brent oil.

Profits should be taken at the level of 69.0. A Stop loss could be set at the level of 73.5.

The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.