FxWirePro: WTI reaches interim target; maintain long positions

In March, we called on our readers to go long on WTI with targets around $59.2 and $61 per barrel, https://www.vinsonfinancials.com/en/financial-news/1175537-fxwirepro-oil-continues-to-struggle-wti-bulls-target-test-of-61-per-barrel

Later the target was revised higher at $63 per barrel, https://www.econotimes.com/FxWirePro-WTI-target-revised-higher-to-63-per-barrel-1511952

• Thanks to yesterday’s rally, WTI has reached another of the interim target as it currently trades at $61.7 per barrel.

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.

However, negative catalysts like increased production in the U.S., President Trump’s twitter attack on higher oil price, and weaker demand would exert selling pressure going ahead.

As of now, we continue to expect the WTI would reach net target around $63 per barrel.