FxWirePro: Daily Commodity Tracker - 21st March, 2022 
In a previous article named, “FxWirePro: Oil price might decline to $43 per barrel”, available at http://www.econotimes.com/, we urged our readers to go short on crude on 25th of April at the then current rate of $49 per barrel, targeting $43 per barrel as the bullish momentum that was fueled by the OPEC deal agreed on last November was fading. We warned that the current backwardation in the market, which shows higher demand or short supply in the spot market wasn’t large enough to fast burn the inventories. The backwardation was at 11 cents per barrel then.
The rising production in the United States and the failure of the OPEC deal to reduce inventories prompted hedge funds and money managers to cut their long position in WTI and pushed the oil price to the lowest point since the OPEC deal. WTI is currently trading at $44.2 per barrel. As the oil price has moved close to our forecasted target, we would like to extend the target towards $38 per barrel in the short term. We would also like to revise our stop loss from $55 per barrel to $49 per barrel.
One note of caution: There is a very strong support around $42 per barrel, so we urge our readers to closely monitor price activity around that level.
