Oil prices fell marginally after a sustained rise in prices as a result of US gasoline inventories suggesting that they are shorter than normal. It is surprising that given that oil prices were as low as they were over the Winter period that those short did not hedge some of their exposure and it looks almost as if the oil companies were playing the market.

That having been said oil prices look as if they have been bought significantly over the last 11 weeks and that sellers are becoming a little more aggressive forcing prices back down. This time last year prices were significantly above $70 a barrel and players were talking about prices hitting $90-$100 a barrel. The usual daily mail stories of petrol hitting £1 gallon have been seen this year but most of the rise in prices is as result of the change in tax, after the budget.

Oil prices remain steady as she goes with a likely splurge of sellers above $70 and more and more buyers entering the fray at $60. Not surprisingly it is rangebound and trading around $65 this year.