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Last night, the American Petroleum Institute (API) in its weekly oil stocks report pointed to a huge drop in crude oil stocks of 5.1 mio. barrels and even bigger drop in gasoline stocks of 7.7 mio. barrels, while distillates dropped by more than 3 mio. barrels. Now this afternoon's weekly oil inventory report from the Energy Information Administration (EIA) will be followed closely for confirmation of the data. Consensus is drops all over, but not as big as the API data showed, so expect volatility to be high ahead of the publishing at 16.30 CET.

OPEC oil producers' compliance to the production cut agreement was at 92% in October as OPEC output dropped by 80,000 barrels per day to 32.78 mio. barrels per day. September compliance was at 86%. The other major oil producer, Russia, also kept its part of the deal according to Reuters.

Overnight, the Chinese Caixin Manufacturing PMI for October came out unchanged at 51.0. This afternoon, U.S. ADP Nonfarm Employment data is published ahead of Friday's more closely watched Nonfarm Payroll data. A major potential financial markets influencer today is the FOMC statement and Fed's interest rate decision this afternoon, so expect volatility in the financial markets - this could spill over to the oil market as well.