FxWirePro Call review: Maintain short positions in oil

Oil ‘s bounce back on the back of a large inventory draw according to API inventory report and on the back of a news of final fuel shortage in Europe despite large draw by refineries spoiled last night as the oil price declined from $46.5 per barrel to $45.4 by closing.

Current call:

• We at FxWirePro, recommended selling oil around $49.5 area back in May, after our review of OPEC agreement with an initial target of $46.5 per barrel.
• The target was then extended to $38 per barrel for WTI with an interim target of $42 per barrel.
• We recommended partial profit booking at $42.9 per barrel on 23rd June as the $42 target was reached.
• We recommended re-entering around $46 per barrel after the price recovery spoiled early July with the above-mentioned target.

Despite selloff yesterday and today, the price of oil is still positive for the week. However, as of now, we don’t see any threat to the call and would maintain the bearish outlook. However, we would continue to monitor fundamental changes in the market.