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 soars on Saudi promise to make real supply cuts
On Tuesday, crude prices added, underpinned by statements that OPEC-leader Saudi Arabia was making considerable supply drops to customers, though ascending American output meant financial markets were still well supplied.
Brent crude futures hit $48.42, tacking on 0.3% from their previous close.
American West Texas Intermediate crude futures reached $46.21 per barrel, gaining 0.3%.
Saudi Arabia, the world's number one crude exporter, is currently leading an effort by the Organization of the Petroleum Exporting Countries to reduce output by nearly 1.8 million barrels bpd until the end of the first quarter of next year for the purpose of propping up prices. As for other countries, including top producer Russia, they’ve joined the initiative too.
During the first half of 2017, there were doubts as for OPEC's compliance with its ambitious promise, especially considering that supplies to Asia are still high.
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 Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
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.