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 near 2015 maximums on tight market
On Thursday, crude was steady with trading activity drying up on the eve of the New Year weekend.
Heading into next year, investors told that market conditions were quite tight because of everlasting supply cuts led by OPEC and Russia.
American West Texas Intermediate crude futures hit $59.69 a barrel, adding 5 cents from their previous close. Earlier this week WTI had overleapt $60 a barrel – the first such a jump since June 2015.
WTI gained support from the American Petroleum Institute, which reported a 6 million barrel sag in crude inventories to about 432.8 million.
Meanwhile, Brent crude futures reached $66.50 a barrel, soaring 6 cents. Earlier this week this crude benchmark managed to break through $67, which is the first time since May 2015 this week.
Investors told that the high prices were caused by a relatively tight market after a year of OPEC as well as Russia-led production drops that were started last January and supposed to cover all of 2018.
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 Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
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.