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By Michael Poulson, A/S Global Risk Management

Brent oil price is back in the $47 area after Friday's weekly oil rig count from Baker Hughes showed an addition of 7 rigs came online in the U.S. shale oil industry. The number of active drilling rigs is now 414, which is the highest number since February this year. Still below same time last year (652), but considerably up since May (316).

This week, the oil inventory report will be key to watch after Thursday's huge draw in crude oil inventories - the largest since 1999 - wondering if it was a one-off or the new trend. One explanation of the huge draw is that shipping was delayed and production facilities shut due to tropical storm Hermine. This does not, however, explain the large 4.2 mio. barrel-draw in gasoline stocks, or the large increase in distillates stocks of 3.4 mio. barrels.

The coming freeze deal talks keep taking headlines. Nigeria, Libya and Iran should have the right to boost oil production regardless of a potential freeze deal, according to Algeria's energy minister who is hosting the OPEC/non-OPEC talks later this month. OPEC's secretary-general stated that OPEC was focusing on "sustainable stability" for the market rather than specific price level.

Turning to economic data, today seems rather thin. Overnight, Chinese Industrial Production will be published; later tomorrow, a row of European key data will be released. A number of Fed speeches later today. Later this week, the U.S. inflation data is published and Chinese holiday Thursday and Friday. Note: today is a public holiday in Singapore.

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A/S Global Risk Management is a provider of customised hedging solutions for the management of price risk on fuel expenses. The company has offices in Denmark and Singapore. For further details about its risk management products and services, please call +45 88 38 00 00 or email hedging@global-riskmanagement.com.