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 multi-year peaks
On Tuesday, crude was hovering at multi-year maximums because unrest in Iran sparked worries over potential supply disruptions in the region, while supply cut efforts by global crude producers kept backing the commodity.
February delivery US West Texas Intermediate crude futures gained 0.23% being worth $60.55 a barrel, which is the highest reading since June 2015.
Additionally, March delivery crude futures rallied 0.16% hitting $66.99 a barrel, which is off an almost three-year maximum of $67.29 demonstrated overnight.
Late on Monday, Iranian protesters dared to attack police stations in their fourth day of demonstrations thus marking the greatest challenge to Iran’s clerical leadership since 2009.
Crude was still backed by output cuts led by OPEC. In December, the oil producers agreed to prolong current crude output cuts until the end of 2018.
Gasoline futures rallied 0.16% being worth $1.789 a gallon, natural gas futures gained 2.10% trading at $3.015 a million British thermal units.
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 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.
The US CPI will come out on Wednesday, May 11, at 15:30 MT time (GMT+3).