Following the latest news from the Energy Information Administration (EIA), West Texas Intermediate (WTI) and Brent crude oil benchmarks jumped. EIA informed about lower oil production over week and mostly gasoline stockpiles added to bullish sentiment with a drop of 4,258K barrels over week. On the other hand, crude oil inventories hiked to 33-yr record high, but could not calm down the mood on market as subsequent explosion of oil platform in Campeche Bay added to oil bulls’ strength.
Nevertheless, this short-term spike is not expected to bring a swing to the trend. Only overall cut in oil production in one of the major oil output countries could help the price from a long-term perspective and there should be no deal with Iran (lift to oil export sanctions). On the contrary, we can expect prices to move mostly in range of $40-$50 during this year.
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