WTI will reach the 44.00-46.00 area by the end of 2016The fundamentals are still bearish at the moment, thanks to global oversupply. The weakness in WTI is caused by the moderately declining U.S. production, increase in the output of OPEC and the return of Iran to the world stage, as sanctions were lifted. The fears of further oil decline are further overlined by the decision of Saudi Arabia and Kuwait to restart global produce up to 300 thousand barrels a day.
On the other hand, the talk of oil freeze increased oil prices by more than 10% in March. Which led big hedge funds to start betting on higher oil prices.
My expectations are that prices will continue falling and that by the end of 2016, prices will reach the 44.00- 46.00 area.
This perspective will change depending on the fundamentals, but with the current data given this is my opinion.
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