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 rallies towards $64 on British pipeline outage
On Tuesday, crude tacked on towards $64 a barrel, underpinned by the Forties pipeline outage in the North Sea, not to mention OPEC-led supply cuts as well as hopes that American crude inventories headed south for a fifth week.
Soaring output in America put a lid on revenues. However, shale output will soar to a record high in January, as a government estimate published on Monday states because higher prices encourage crude producers to pump more.
Brent crude futures gained 34 cents being worth $63.75 a barrel, while American crude futures also acquired 34 cents hitting $57.50.
The unexpected shutdown of Forties since the previous week has underpinned Brent as Forties appears to be the largest of the North Sea crude grades backing the benchmark. On December 2 Brent hit $65.83, which is its highest value since mid-2015.
A deal by OPEC along with non-member producers, such as Russia to reduce to tame a supply glut has also underpinned oil prices.
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 US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
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.