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The blip went away - oil prices back below $30

After a few days of upwards trend, oil prices fell back below $30 as the global oil abundance took centre stage again. Several pieces of news could be the cause; among others, Iraq informed of record-production in December and stated that it could increase output to up to 4 mio. barrels per day in the central and southern regions (from currently around 3.7-3.8 mio. bpd). Also, Saudi Arabia will continue oil-related investments in an attempt to keep up production and fight for market share. The soon-to-return-to-market Iranian oil also weighs on prices.

Tonight, the weekly oil stocks data from the American Petroleum Institute will be published; an increase in crude and gasoline, drops in distillates is expected.

Today, the two-day Fed meeting starts, though no further interest rate hikes are expected this time around, comments from the meeting will be followed closely for hints of timing of the next hike. Later today, the U.S. Services PMI and CB Consumer Confidence will be published. Bank of Japan also commences meeting this week; it is uncertain whether the bank will add more monetary stimulus measures to spur growth. Another day full of volatility ahead!