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 is firm on anticipated OPEC cut extension
On Wednesday, crude rallied after a reported dive in American crude inventories and also on hopes that an OPEC-led output cut aimed at tightening the crude market is going to be extended beyond next March.
Brent crude futures showed a reading of $63.07 a barrel, rising 0.8% from their previous close.
American West Texas Intermediate crude futures hit $57.74 a barrel, soaring 1.6%.
Market participants told financial markets have been underpinned by a recent effort led by the Organization of the Petroleum Exporting Countries to limit crude output in an attempt to tame a global supply overhang.
The deal to restrict output will expire in March next year, although OPEC will have a meeting on November 30 in Vienna just to discuss the outlook for the further policy.
Traders don’t doubt that the meeting's outcome is going to determine crude prices' near-term fate.
Additionally, crude markets were being suppressed by ascending output in America, which has rallied by nearly 15% since mid-2016 to about 9.65 million barrels a day.
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.