Image credit: Global Risk Management

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Oil prices continue the uptrend as geopolitics and dwindling global inventories take centre stage.

The monthly oil market report from OPEC was published yesterday. According to the report, global oil demand will likely increase by 1.65 mio. barrels per day to average 98.85 mio. barrels per day, up from 97.2 mio. barrels per day in 2017. Global crude oil production growth will come from the U.S. oil drillers. OPEC states that the global inventory glut has almost been eliminated. Read the entire report here.

Uncertainty remains as to the impact of last week's U.S. decision not to renew the agreement of lifting international sanctions against Iran. Iran is OPEC's thirdlargest oil producer and reimposing sanctions could take 400-500,000 barrels of crude oil off the market come November.

Tonight, the weekly oil stocks data from the American Petroleum Institute (API) will give a hint of the U.S. inventories and production ahead of tomorrow's more closely followed report from the Energy Information Administration (EIA). Consensus is a draw in crude, distillates and gasoline stocks.

Overnight, Chinese Industrial Production for April came out better than expected, at 7% versus 6.0% previous. An increase in production activity in one of the world's largest countries could be bullish for oil as it could lead to increased demand for oil. Later today, Industrial production data for EU and retail sales data from the U.S. is published.