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 its highest value since May 2015
On Tuesday, crude rallied further above $68 a barrel, hitting its highest value since May 2015, underpinned by OPEC-led output cuts as well as hopes that American crude inventories dived for an eighth week.
The Organization of the Petroleum Exporting Countries along with allies including Russia are keeping supply restrictions in place this year, which is a second year of restraint, just to tame a price-denting glut of crude kept in inventories.
Brent crude soared 9 cents hitting $67.87 a barrel, having touched $68.29 earlier, which is its highest reading since May 2015. American crude tacked on 18 cents trading at $61.91 and also hit its highest value since May 2015.
This week’s supply reports from industry group American Petroleum Institute as well as the US government's Energy Information Administration are supposed to demonstrate that American .crude stocks edged down by 4.1 million barrels, which is an eighth losing 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 US PPI will come out on Thursday, May 12, at 15:30 MT time.
The US CPI will come out on Wednesday, May 11, at 15:30 MT time (GMT+3).
Representatives from 15 oil-rich nations attend OPEC meetings. They discuss a range of issues regarding energy markets and, most importantly, agree on how much oil they will produce.