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 sinks as American drillers add rigs
On Monday, crude went down after American shale drillers added more rigs the previous week, although prices still kept close to their maximum since mid-2015, underpinned by an extension of output cuts agreed the previous week by OPEC as well as other producers.
By December 1 drillers in America added two crude rigs, thus bringing the overall count up to 749, which is the highest outcome since September, as energy services company Baker Hughes told in its Friday’s report.
American West Texas Intermediate crude futures lost 0.8% being worth $57.90 a barrel. Additionally, Brent futures declined 0.6% hitting $63.34 a barrel.
The US rig count, which is an early gauge of future output, rallied abruptly from 477 rigs active in 2016 after energy companies stepped up spending plans for this year.
Over 2017 drillers were generally encouraged to boost their activity because crude prices started reviving from a multi-year price decrease approximately when OPEC as well as some non-OPEC producers decided to limit output last year.
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 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.
The US PPI will come out on Thursday, May 12, at 15:30 MT time.