"We believe that global oil markets are currently well supplied, but only because OPEC continues to produce at a rate above its stated target," says Ole Hansen, Head of Commodity Strategy, Saxo Bank in TradingFloor.com's Q2 Insights.

US production continues to impress and grow, while Venezuela, following the death of President Hugo Chavez, could again potentially become a key supplier to the global market provided it opens up for foreign-direct investments, something that is currently not expected to happen anytime soon. We expect Brent crude to continue being mostly range bound during the second quarter, with the 105 USD/barrel to 115 USD/barrel range seeing most of the activity. The greatest risk, however, will be skewed to the downside because of the ongoing concerns related to Europe.