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 prices go down on further ascend in American drilling
On Monday, crude sank, suppressed by an ongoing expansion in American drilling, which has assisted to maintain high global supplies notwithstanding an OPEC-led initiative to reduce output to tighten the market.
Signs of faltering demand have also helped weakening sentiment, dipping prices to levels comparable to when the output drops were first unveiled late the previous year.
Brent crude futures lost 0.3%, trading at $47.24.
American West Texas Intermediate oil futures tumbled 0.3%, being worth $44.59 a barrel.
Prices for both benchmarks lost approximately 14% in May, when crude producers led by the Organization of the Petroleum Exporting Countries dared to extend their promise to reduce output by 1.8 million barrels a day by additional nine months until the end of the first quarter of next year.
Traders told the key factor suppressing crude prices was a steady ascend in American output, which undermines the OPEC-led effort.
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.