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By Michael Poulson, A/S Global Risk Management

Oil prices took another tug downwards yesterday as U.S. economic data continued improving and oil inventories continues to build.

The EIA oil inventory report yesterday confirmed Tuesday's API oil stocks data showing builds in crude oil and distillates stocks, small draw in gasoline, see details below.

Release: EIA oil data (Consensus)
Crude: 2.276M barrels (0.921M)
Distillates: 1.496M barrels (-0.157M)
Gasoline: -0.691M barrels (-1.157M)
Refinery utilization: 0.3%

Voices remain mixed on a potential agreement on output freeze later this month when OPEC and non-OPEC oil producers meet. Both Iraq and Saudi Arabia state that they can produce more than they currently do, but also that they are ready to join/support the before-mentioned talks to curb oil production. Saudi Arabia's al-Jubeir said that "I think there is a move toward a common position, toward a common effort" and that "if other producers were to agree it is reasonable to accept Saudi Arabia to go along with it".

Today's main economic data will be UK and U.S. manufacturing data and Fed member speech. Yesterday, a U.S. job report showed improving job creation in the huge country; now eyes are on tomorrow's job report - expect volatility ahead of this as better-than-expected data will increase expectations of a soon-to-come interest rate hike by the Fed - lower than expected data will on the other hand could lead to the opposite assumption.