FxWirePro: WTI target further extended to $64.5 per barrel

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 this week’s rally, WTI has reached another of the interim target as it currently trades at $62.7 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.
• However, the oil market is no longer in backwardation. May contract of WTI is trading at $0.27 per barrel premium to cash price, suggesting a slowdown in price increases going ahead.
• Non-OPEC supplies are expected to decline further.

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.

Given the momentum, we expect the price of WTI to move higher than our forecasted target of $63 per barrel and reach just shy of $65 per barrel.