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?
Crude closes to mid-2015 maximums
On Wednesday, crude was steady, not far off mid-2015 maximums hit the previous session because firm demand along with ongoing efforts led by OPEC and Russia to diminish output tightened the oil market.
American West Texas Intermediate crude futures showed $60.40 a barrel, gaining 3 cents from their previous settlement, which is not far off the $60.74 June 2015 maximum hit the previous day.
As for Brent crude futures, they reached $66.55 a barrel, sliding 2 cents, which is not far off the $67.29 May 2015 peak from yesterday.
Notwithstanding this, there were signs that in the last days of 2017 markets had overshot because American output is set to edge up further and also doubts are emerging as for whether demand surge is able to continue at current levels or not.
American output has edged up by nearly 16% since mid-2016, reaching 9.75 million bpd at the end of 2017.
Meanwhile, for the whole of 2017, Russian crude output rallied to 10.98 million bpd versus 10.96 million bpd in 2016 and also 10.72 million bpd in 2015.
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 Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
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.