This week started with the talk of the United States banning Russian oil exports, so XBR/USD saw $130 a barrel. Then the ban became reality. What does it really mean for the market?
American crude sags on increased drilling
On Monday, American crude prices went down, easing from two-year maximums on the prospect of rising US output. However, global markets were a bit better backed by hopes that an OPEC-led supply cut is going to be extended.
American West Texas Intermediate crude futures hit $58.68 a barrel, sliding 0.5% from their previous settlement. As for Brent crude futures, they lost 4 cents being worth $63.82 a barrel.
American crude output has inched up by 15% since mid-2016 to about 9.66 million barrels a day, which is not far from leading producers Saudi Arabia and Russia. Besides this, increasing drilling activity for fresh production means output is believed to keep rising, as market experts told.
The previous week American energy companies added crude rigs. The monthly rig count added for the first time since July, hitting up to 747 active rigs because crude producers are generally attracted by soaring oil prices.
US Energy Information Administration will reveal Crude oil inventories on February 9, 17:30 GMT+2.
On Wednesday, February 2, during the day, members of the Organization of Petroleum Exporting Countries (OPEC) and Joint Ministerial Monitoring Committee (JMMC) will discuss a range of issues regarding energy markets and, most importantly, agree on how much oil they will produce.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.
The US PPI will come out on Thursday, May 12, at 15:30 MT time.