Oil prices were very volatile yesterday. Main benchmarks were surging ahead of the DOE inventories report as API projected the stockpiles to increase less than market expectations. The data from DOE proved to be supportive for both WTI and Brent initially. However later during the session oil corrected earlier gains and WTI increased by mere 0,1%. We note that oil is continuing its correction and WTI is lower by 1,3% today.
The supply glut is still the main theme on the market keeping the prices at subdued level. It seems that the 40 USD/bbl is seen as a strong resistance for the energy commodity at the moment. However there are some news that could ease the overproduction issue. Ecuador and Venezuela are going to advocate in favor of cutting the output level during the Doha meeting. Main oil OPEC and non-OPEC producers are set to discuss the market developments on 17th April.