FxWirePro Call Review: Sellers to remain active in WTI unless $76 per barrel crossed

In early July, we suggested that oil price is likely to move lower before longer-term buyers emerge again in the market amid rising supplies, https://www.econotimes.com/FxWirePro-Another-5-percent-decline-in-oil-price-likely-before-buyers-emerge-1402976 we forecasted that WTI would decline to as low as $67 per barrel area.

As the price declined further, in a follow up review, we have extended our WTI price target from $67 area to as low as $52 citing some of the key bearish fundamentals; Middle East truce, weaker demand from China and India due to respective slowdown in the economies, higher production in Saudi Arabia, Russia, Iraq, and UAE.

While supplies are tightening and oil price is benefiting from declining inventory, we expect the weaker demand to play a crucial role as the USD is steadily rising against the emerging market currencies amid a dollar-squeeze in the market.

Hence, we expect to sellers remain active in WTI, despite the sharp rise in prices over the past two weeks, unless price breaks decisively above $76 per barrel area.