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 keeps to multi-month minimums on glut fears
On Wednesday, crude went down, sticking to multi-month minimums. It’s because market participants discounted evidence of firm compliance by OPEC as well as non-OPEC crude producers with a deal to diminish crude output worldwide.
Brent crude futures lost 0.2%, being worth $45.91 barrel, having dropped almost 2% during the previous trading session, thus demonstrating its lowest outcome since November.
August delivery US crude futures descended 0.2%, trading at $43.43, following a more than 2% sag to the lowest value since September on Tuesday.
Compliance with an agreement by the OPEC as well as other oil producers to minimize output by nearly 1.8 million barrels per day for six months from January hit its peak in May since mutual curbs were agreed the previous year.
According to Tuesday’s report by the American Petroleum Institute, American crude stockpiles had sagged more than forecast. The previous week American crude stocks went down, while gasoline along with distillate inventories tacked on.
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.