Image credit: A/S Global Risk Management

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Yesterday, the Energy Information Administration (EIA) released its weekly oil inventory report, showing a build in crude oil stocks for the 10th week in a row - likely due to higher oil output and refinery turnarounds. U.S. crude inventories are now around a 1-year high. The data sent crude oil prices lower. U.S. oil production is currently at 11.7m bpd and it does not look like it's going to slow down. Meanwhile, the demand numbers do not look supportive due to the ongoing trade tensions which could possibly worsen and overall global economic uncertainty.

Investors anticipate the G20 meeting on Nov. 30 and Dec. 1 - a meeting of leaders of the Group of 20 nations, the world's biggest economies. It is safe to say that the trade war between Washington and Beijing is top of the agenda. The outcome of the meeting is likely to have a very large effect on future expectations of global demand. In recent weeks, both OPEC and the International Energy Agency cut their demand forecasts due to overall declines in developing economies. In order to boost the global economy and thereby the overall demand for oil, a trade deal between the U.S. and China is needed.

Fed's Chair spoke last night ahead of today's FOMC meeting, and markets interpreted comments as dovish regarding the row of interest rate hikes next year, which put the U.S. dollar under pressure. A weaker dollar tends to support oil prices.

Today also sees ECB's Draghi speech as well as U.S. housing data, which could give additional volatility in the financial markets and spill over to the oil market.