The current oil market conditions continue to deteriorate, further putting downward pressure on spot and forward prices. Oil prices declined over 5 percent today, falling below $30/bbl as U.S. economic data failed to impress the markets.

The imbalance in 1Q2016 of +2.1 mbd surprised the markets as this level was not seen since mid-2014. Further pricing pressure is likely to build in the second quarter of 2016 on growing inventories, with the risks of exhausting onshore storage seems to peak.

"We have revised our supply and demand estimates in light of weaker economic growth and warmer weather and have lowered our price forecasts for both WTI and Brent crude oil for 2016 to an average of $31.50/bbl and $31.25/bbl, respectively. Looking at the shape of our forecast this year, our view is that oil markets are set to remain heavily oversupplied in 1H2016, with both WTI and Brent averaging $26.50/bbl" - JP Morgan.