Image credit: A/S Global Risk Management

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OPEC and non-OPEC oil producers have allegedly not ruled out a return to oil production cuts next year. Russia and Saudi Arabia have started bilateral discussions over possible 2019 oil production cuts, which caused prices to rise temporarily yesterday, before the U.S. Energy Information Administration (EIA) reported that domestic crude inventories rose by 5.8 million barrels in the latest week. It is the seventh week in a row of builds in U.S. crude oil stocks. U.S. crude oil output hit 11.6 million bpd - a weekly record, according to EIA. The EIA furthermore expects U.S. crude oil production to increase to above 12 mio. barrels per day mid-2019.

A lot of tension and anxiety has been accumulating over the past months anticipating how the U.S. sanctions on Iran were going to affect Iranian output and exports.

Early this morning, Chinese trade activities came out higher than expected, easing fears that the economy of the huge country is slowing down. Chinese crude oil imports were at a record high. Later today, the U.S. central bank will publish its interest rate decision along with the FOMC Statement.