Rising stocks and rig productivity keep it tough for WTI bulls

Talks are all over market place that oil price is rebounding as WTI and Brent both setting an important bottom.

• WTI and Brent both has broken above 3 month high, which itself proves resilience of the bulls. WTI has now cleared an important resistance at $54/barrel, however bulls are struggling since then.

In the short term WTI crude is very much likely to move upward with $60/barrel as initial target and $65/barrel as next.

Even such a move could be premature to be calling for end to downtrend, in fact rising productivity from wells are keeping US crude production above 9 million barrels per day. With US oil farms, now focusing improving efficiency, would make them better competitor against oil form Middle East and Russia.

• As per latest estimate average crude production in US to fall only 57,000 barrels/day in May compared to more than 40% drop in producing rigs.
  
  
• Last Wednesday, EIA inventory indicated that crude oil stocks rose by another 5.3 million barrels, still beating estimates.

WTI is trading at 57.03, down -0.2% today so far.