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By Michael Poulson, A/S Global Risk Management

Today, the monthly report from OPEC is published and the markets will get wiser on the organization's compliance to the production cut deal from last year. Recent info points to around 90% compliance, which is considerably higher than initially anticipated. Expect some volatility around the publishing time.

The number of active drilling rigs in the U.S. keeps increasing and remains around a one-and-a-half-year high. According to Baker Hughes on Friday, the number of oil rigs coming online over the last week increased by 8 to 591.

Also Friday, the International Energy Agency (IEA) in its monthly report upped its expectations to global demand growth from 1.3 mio. barrels per day (bpd) to 1.4 mio. bpd. Increased industrial activity combined with cold weather drive the increase. The agency also expects OPEC production in January to show a 1 mio. bpd drop to 32.06 mio. bpd.

Turning to economic data front, today looks rather thin, but overnight, Chinese CPI and PPI (inflation data) is published. Later tomorrow, a row of European and U.S. inflation data and Eurozone GDP is published along with a couple of Fed speeches. Yellen testifies on the economic outlook and monetary policy actions in Washington.

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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.