Oil prices spike

Crude oil prices spiked yesterday on the EIA data and comments by Fed chairman Bernanke.

The stats out in the US revealed a crude build of 7.4mio barrels, significantly above the forecast levels which would have been bullish for oil were it not for the gasoline stock number which came in at over double the forecast of a 2mio decline.

This 4.5mio bbl decline in gasoline is important coming as it does ahead of the driving season in the US, the peak demand period. This factor added to bullish sentiment which had emerged as Bernanke acknowledged the recession in the US which saw the Dollar tumble.

WTI prices rose over $4/bbl reversing the declines seen over the last three sessions.

The rises in oil prices see WTI begin today's session at $104.65 (€66.90) with Brent trading at $103.30 (€66). Key US data out on Friday in the form of employment data will ensure the bullish tone remains intact at least for the remainder of the week but in the absence of any fresh impetus the market will struggle to recapture ground around the previous record highs.

Brent crude set for a daily range of between $103.80-$100.30 (€66.36-€64.13).