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 reaches 2-year maximum
On Monday, crude started the week on a positive note, underpinned by hopes that crude producers will decide to extend an output cut at their gathering at the end of November.
According to the original terms of the deal, OPEC along with 10 other non-OPEC producers led by Russia decided to reduce output by nearly 1.8 million barrels a day for up to six months. In May 2017 they extended the agreement for a period of nine months until March 2018 for the purpose of reducing global crude inventories and underpin crude prices.
Discussions will last till the November 30 meeting, where crude ministers from OPEC and also the participating non-OPEC producers will be present.
Crude prices obtained another boost because a sizable weekly sag in active American crude rigs to the lowest reading since May drove expectations for a slowdown in domestic crude output surge.
Oilfield services company Baker Hughes informed that the overall number of active American rigs drilling for oil went down by eight to 729 the previous week.
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.