FxWirePro: Maintain long positions in Brent; target looms at $74 per barrel

In March, we called on our readers to go long on Brent with targets around $71.5 per barrel, https://www.vinsonfinancials.com/en/financial-news/1175535-fxwirepro-oil-price-consolidates-brent-bulls-target-test-of-72-per-barrel

Later the target was revised higher at $74 per barrel, https://www.vinsonfinancials.com/en/financial-news/1175594-fxwirepro-target-for-brent-revised-higher-to-74-per-barrel  

• Thanks to yesterday’s rally, while WTI has reached another of the interim target as it currently trades at $61.7 per barrel, Brent is yet to break the $70 per barrel area.

With fundamentals remaining strong,

• According to Reuters’ production survey, OPEC production is set to decline by another 0.28 million barrels per day in March.
• Backwardation has increased significantly compared to the near month; currently stands at $1.76 per barrel.
• Non-OPEC supplies are expected to decline further.

we continue to expect the Brent to reach the forecasted targets.