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 moderately rebounds in Asia
On Thursday, crude prices rebounded modestly in Asia because markets are waiting for full details of a widely anticipated extension of OPEC-led output curbs.
In New York, January delivery crude futures tacked on 0.21% being worth $57.42 a barrel. Meanwhile, in London, Brent futures added 0.32% reaching $62.73 a barrel.
OPEC along with key ally Russia is going to extend output curbs for up to nine months. Nevertheless, they’re on the verge of reviewing the deal in June of 2018 based on market conditions.
On Wednesday, six ministers from OPEC as well as non-OPEC crude producers including Russia and Saudi Arabia met in Vienna and made up their mind to extend the crude output curbs of 1.8 million barrels a day to the end of next year. They also discussed other related matters without providing further details.
Overnight, oil settled lower after data disclosing crude stockpiles dived for the second straight week didn’t manage to compensate a sudden build in product inventories ahead of the OPEC gathering.
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.