Friday’s oil prices have frozen due to a lack of reasons for further growth. It’s possible that the time of price correction is upon us. Today Brent on May contracts is trading at around $41.3 per barrel and WTI with April delivery is going for $41.4 a barrel.
Today is the last day of trading for April futures of WTI and due to this there has been a jump upwards in the price at trade opening. Soon the speculators will rush to close positions, meaning that WTI could correct downwards today. Brent is also in no hurry to rise in price. It’s likely that investors will wait for new fundamental reasons. The outcome of the US Fed meeting has already been taken into account by the market, although investors could start buying again, riding the wave of cheap money.
In one month a meeting of oil exporting countries will take place and its outcome should set the quotes straight. This evening will see data come out from BakerHughes on the number of drilling rigs. The numbers have been falling over the past few weeks, offering support to the oil quotes at the beginning of the month.
Brent will continue to trade $40.5-41.5 per barrel until the day’s end, with WTI sat in a similar price corridor.