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?
Oil declines on soaring American fuel stocks
On Wednesday, crude dived because refined product inventories in America rallied in what the market interpreted as a true indication of lackluster demand.
American West Texas Intermediate crude futures hit $57.37 a barrel, sinking 0.4% from their previous settlement.
As for Brent crude futures, they lost 0.4% reaching $62.62 a barrel.
Market participants told that the lower prices emerged after a report by the American Petroleum Institute had pointed to a 9.2 million barrel leap in gasoline stocks by December 1 as well as a soar of 4.3 million barrels in inventories of distillates, including heating and diesel oil.
The very perception that the higher fuel stocks hinted at weak demand overshadowed the fact that crude inventories inched down by 5.5 million barrels reaching 451.8 million.
Robust global demand along with tight supplies might bring Brent crude to $70 a barrel by mid-2018, as some financial experts foresee.
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 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.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.