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Mixed U.S. data and OPEC monthly report (Brent: $48.5)

Huge intra-day volatility yesterday as Brent contract expired, mixed economic data came from the U.S. and the Swiss Franc left the currency cap towards the euro.

Brent oil prices almost touched $51 before retracing to around $48. The U.S. Producer Price Index, measuring the change in the price of goods were slightly below November's data -0.3% versus -0.2% previous. The Philadelphia Fed Manufacturing Index, however, came out at 11-month low; 6.3 versus 24.5 previous. The weekly Initial Jobless Claims increased to 316,000 (previous 297K).

In OPEC's monthly report, published yesterday, the Organisation forecasts weaker demand for its crude, 28.8 mio. barrels per day in average. December production was 30.2 mio. barrels per day; an increase of 140,000 barrels from previous month. OPEC member Iraq, exporting 2.94 mio. bpd. in December, is planning to double exports from its Kirkuk oil fields from around 150,000 bpd to 300,000 bpd within the next weeks. Iraq holds the world’s 5th largest oil reserves.

Main economic data today will be the U.S. Core CPI (Core Consumer Price Index) at 14.30 and European CPI (11.00 CET).