Image credit: Global Risk Management

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Continues geopolitical uncertainty and the U.S. potentially imposing sanctions on Iran continue to take headlines. Yesterday, the U.S. published a list of demands the Iran should comply with in order to avoid re-imposing of sanctions.

Over the weekend, presidential elections took place in Venezuela and the president was re-elected. The country is on the verge of economic collapse and crude oil production is dwindling despite having the world's largest proven oil reserves. Oil revenues account for around 95% of export earnings, i.e. the country is heavily dependent on oil exports. Venezuela is member of OPEC and, allegedly, the organization is keeping an eye on the production as well. According to the current oil production cut agreement, Venezuela is currently producing almost 500,000 barrels below the target of the agreement (1,5 mio. barrels per day)

Tonight, the weekly oil stocks data from the American Petroleum Institute (API) is published; one day ahead of the more closely followed EIA oil inventory report. Last week, the two reports deviated heavily with the API reporting of huge builds in crude oil stocks, while the EIA reported of a draw. Consensus for tomorrow's report is a draw in crude oil stocks.

Turning to economic data, today is light on news and events apart from UK inflation report and Bank of England's speech. Tomorrow sees a row of manufacturing PMIs around the world, giving hints of the economic growth of the countries.