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 sits close to half-year minimums
On Friday, crude prices kept to six-month minimums, held down by an everlasting supply overhang, persisting notwithstanding an OPEC-led effort to reduce output and also prop up crude markets.
Brent crude futures hit $46.97 a barrel, moderately higher than their previous settlement.
American West Texas Intermediate crude futures gained too, demonstrating $44.48 per barrel.
However, prices for both benchmarks have lost approximately 13% since late May, when producers led by the OPEC dared to extend a promise to reduce output by nearly 1.8 million barrels a day until the end of the first quarter of next year.
Soaring American crude output, especially from shale drillers, is actually contributing to the overall ineffectiveness of the OPEC-led drops.
Besides this, high exports as well as production from Russia are adding to the everlasting glut too.
Russia is supposed to export up to 61.2 million tons of crude via pipelines during the third quarter versus 60.5 million tons in the second quarter.
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 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.
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.