Image credit: Global Risk Management

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Oil prices are supported by continued fears of supply disruptions in the Middle East and Venezuela along with signs of global inventory overhang dwindling.

In the beginning of 2017, OPEC and a row of non-OPEC oil producers agreed to cut oil production by 1.8 mio. barrels per day in order to curb the surplus oil in the market and restore oil market balance. The deal is still valid and the parties will meet next month to among others discuss an extension/adjustment of the deal. According to the International Energy Agency (IEA), global oil stocks have dropped to a three-year low, among others due to robust demand.

Tonight, the weekly U.S. oil rig count from Baker Hughes is published. The last 6 weeks have seen increases in the number of active rigs and oil production has soared for several months to a record 10.72 mio. barrels per day, making the U.S. the world's second-largest oil producer, only surpassed by Russia's 11 mio. barrels per day production.

Russia, UAE and Saudi Arabia will meet in Saint Petersburg in a week to discuss the oil market - expect some volatility as statements and news emerge in connection with this.

Turning to economic data, today sees EU trade balance. Other than that, no major releases.