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 is capped as American output hits 10 million bpd
On Thursday, crude was steady, underpinned by dipping crude inventories in America, although capped by output, rapidly approaching 10 million barrels a day – this level was only exceeded by Russia and Saudi Arabia.
American West Texas Intermediate crude futures hit $58.16 a barrel, gaining 7 cents from their previous settlement.
Meanwhile, Brent crude futures tacked on 6 cents being worth $64.54 a barrel.
Both benchmarks earned approximately 1% during their last sessions, backed by official data disclosing a 6.5 million-barrel dip in American crude inventories to 436 million barrels by December 15, which is the lowest outcome since October, 2015.
US crude output suddenly grew, while a soar in gasoline stocks indicated a slowdown in demand.
American crude output is very close to overleaping 10 million barrel a day, thus undermining efforts led by OPEC and Russia to tighten the crude market through withholding supply in 2017 and 2018.
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 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.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.