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Huge draw in weekly crude oil stocks supports prices ahead of the next oil stocks data this afternoon.

Oil prices surged upwards last night as the weekly oil stocks data from the American Petroleum Institute (API) showed a whopping 11.2 mio. barrels draw in crude oil stocks where "only" around 4 mio. barrel-draw was expected. The crude oil stocks have dropped for 6 weeks in a row, the longest string of draws in at least two years. Gasoline and distillates stocks rose by 4.6 and 4.3 mio. barrels respectively. Now this afternoon's oil inventory report from the Energy Information Administration (EIA) will be followed closely for confirmation/deviation of the data. Expect increase volatility around the publishing (16.30 CET).

Adding to the bullish sentiment was a monthly oil market outlook from the EIA, published yesterday, which predicts an increase in global oil demand growth of 100,000 barrels per day compared to previous report. However, the report also estimates an increase in the U.S. crude oil production to 10.3 mio. barrels per day this year, which is "the highest annual average production in history". 2017 is estimated at an average of 9.3 mio. barrels per day.

Turning to economic data, yesterday's U.S. job report (JOLTs Job Openings) came out slightly lower than last reading. Overnight Chinese CPI data improved slightly while the PPI (inflation) dropped from 5.8% to 4.9%). This afternoon, UK Manufacturing Production along with trade balance is published. .