Production cuts remain in focus
10 Jan 2017 09:28 GMT
|By A/S Global Risk Management.|
| By Michael Poulson, A/S Global Risk Management|
Brent oil Price dropped below $55 yesterday but is back just above at time of writing. Mixed news on the output cut agreement compliance keeps taking headlines and makes oil prices fluctuate. Oil prices dropped yesterday as Iraq oil exports from the southern ports in December came around 3.51 mio. bpd. The country agreed to cut oil 210,000 bpd. Libya reports of increasing production - above 700,000 bpd. - which is around 3-year highs.
Russia - which agreed to cutting 300,000 barrels per day - has allegedly reduced output by 100,000 barrels per day in January compared to December to 11.1 mio. barrels per day. The agreed 300,000 barrel-reduction "counts" from October's level of 11.247 mio. barrels per day for the huge oil producer.
Tonight, the weekly API oil stocks data is published - consensus is slight increase in crude oil stocks. Last week saw huge draws in crude oil stocks, builds in distillates and gasoline stocks.
Turning to economic data front, overnight Chinese inflation data came out mixed with consumer prices increasing less than expected, but producer prices at 5.5% (4.5% previous). Today sees U.S. jobs report. Tomorrow, President-elect Trump will hold a press conference - markets will look for hints of economic policy direction and we could see some additional volatility.
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