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By Michael Poulson, A/S Global Risk Management

Markets still seem to be undecided on what will be the direction of oil prices as the OPEC production cut compliance combined with the recent increase in U.S. shale oil production keep oil prices in tight trading range.

Before cutting production this January, Saudi Arabia produced 10.46 mio. barrels per day (bpd) in average in 2016 and at the same time boosted exports to the highest monthly averages on record. Russia surpassed the huge oil producer by just 0.3 mio. bpd with a December production of 10.49 mio. bpd., thus taking over the position as the world's no. 1 crude oil producer.

Turning to economic environment front, the Greek debt crisis remains a key topic between EU and IMF as the country struggles to meet reform and budget targets of the bailout programme. Today sees a row of Fed member speeches ahead of publishing of meeting minutes on Wednesday.

The weekly oil stocks data from API is one day delayed and will thus be published tomorrow night, one day ahead of the EIA oil stocks report. After the last weeks' huge builds, the data will be followed closely.

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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.