Brent above USD 71: Options skew and geopolitics argue against short positioning

Brent crude is trading slightly higher this morning, extending yesterday’s rally as the geopolitical risk premium was repriced higher on renewed US-Iran tensions.

Brent is now up USD 4. 5/bl from Tuesday’s low, and around USD 3.

7/bl since Monday morning, currently trading near USD 71.

3/bl.

For reference, that is still roughly USD 0.

5/bl below the late-January peak,.