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Last Friday the DXY US Dollar index experienced an upward correction meaning the USD gained strength. Usually when the dollar gains strength the Brent price declines and vice versa. This is exactly what has happened since Friday resulting in Brent currently trading around 68.70 USD. Adding to the bearish run was the US and Canadian rig count released last week both showing quite a large increase which was followed by US crude production increasing about 130 kbpd in just a week!

So where is Brent heading today?

Likely the rise in rigs and production is already priced in and with market focus currently being on the strength of the dollar this is likely going to be decisive for today's trading. Furthermore, today is possibly going to determine if the prices in the middle term will drop further below 68 inUSD or if we are heading back to the 70's.

What to look out for in the days to come is the USD index. But equally important is if there will be further increases in rigs and if the increased production will persist and result in a build in US inventories. Tonight, the weekly oil stocks data from the American Petroleum Institute will be released one day ahead of the more closely followed EIA inventory report.

On the financial front today, we will see a speech by Board member of the European Central Bank (ECB) and a speech from president Trump.

As the month is coming to an end we will see key financial figures being released in the days to come.