FxWirePro: Current WTI rally likely to extend by another 10 percent

Over the past week or so, crude oils have been one of the top performing asset classes and all thanks are due to the members of the OPEC, who could set aside their differences and agree to an ambitious deal (not finalized though) that would see a production cut from OPEC. We have cast doubts over the possibility of the finalization, which is scheduled for November but the market remains happy and optimistic. It is always best to stay with the market, especially in the short run.

Crude oil prices have covered a lot of grounds since the announcement of the deal; however, still long side positions can be created. We expect the crude oil (WTI) to gain at least around 10 percent more from here. WTI is currently trading at $48.4 per barrel and we expect it to reach around $53.5 area. Same can’t be said for the Brent though, which is currently trading at $2.2 per barrel premium over WTI. We expect compression of the premium going ahead.