WTI at 6-years low

marketsforu

WTI hovers near $40 a barrel after the continuation of a steep plunge. The market was taken by surprise with the increase in oil inventories. It gives an impression that bearish sentiment is engulfing the market. 
However McCafferty, the only member of BoE's MPC to vote for a rate hike said that the falling price is perfect for a rate rise as it will prevent hyperinflation. Brent is also trading near the lowest level and the premium over WTI narrows. 
 Source: Bloomberg
WTI should test $40 if the supply glut continues to worsen, if the $40 level is breached we might see the plunge to continue all the way down to $34..