FxWirePro: Sell WTI targeting $52 per barrel

In early July, we suggested that oil price is likely to move lower before longer-term buyers emerge again in the market amid rising supplies, https://www.econotimes.com/FxWirePro-Another-5-percent-decline-in-oil-price-likely-before-buyers-emerge-1402976 we forecasted that WTI would decline to as low as $67 per barrel area.

However, WTI has declined beyond that as the price is currently trading at $65.2 per barrel area. The bearish fundamentals, such as the possibility of a Middle East truce, weaker demand from China and India due to a respective slowdown in the economies, higher production in Saudi Arabia, Russia, Iraq, UAE are not very strong yet but gaining momentum along with a stronger dollar.

We now suspect that the price would decline further and we would like to recommend a short-term sell recommendation on WTI targeting $52 per barrel area. We don’t expect the price to go beyond $72 per barrel area before the forecasted price is reached.