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Oil prices heading for a new range?

Oil prices increased yesterday to the highest level this year as the weekly U.S. oil inventory report from the EIA confirmed Tuesday's API trend with a smaller crude stock growth and a draw in gasoline stock. Adding to the bullish sentiment was a weaker dollar and jitters on the newly agreed deal on Iran's nuclear program.

Release: EIA oil data (Consensus)

Crude: 1.294M barrels (4.057M)
Distillates: 2.017M barrels (0-886M)
Gasoline:-2.0720M barrels (-0.200M)
Refinery utilization: 2.2%

A row of OPEC members held "courtesy meetings" with Venezuela in Caracas yesterday; also Russia is keen to talk to OPEC members on oil prices as the country is suffering economically on the current price levels. Next official OPEC meeting is due in June - an agreement to lower output presently seems unlikely as most countries are fighting for market share and oil stocks around the world are booming.

The European Central Bank kept the interest rate unchanged at 0.05% and President Mario Draghi stated that the euro zone economy was gaining momentum. Greece remains a topic as the country is struggling to implement the reforms necessary to receive financial aid from EU/IMF.

Iran stated yesterday that the country wanted simultaneously lift of santions as the country scales down the nuclear program. Negotiations will resume on 21 April.

According to Iraq's oil minister, Iraqi oil exports in April could increase to around 3.1 mio. barrels/day; up from 2.98 mio. bpd in March and 2.6 mio. bpd in February. Still a bit from the country’s 2015 export target of 3.3 mio. bpd.