Oil slightly down ahead of oil stock data

By A/S Global Risk Management.

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Updated on 07 Feb 2017 10:03 GMT

By Michael Poulson, A/S Global Risk Management

Oil fell slightly yesterday as the stronger dollar and the outlook for another build in crude stocks weighs.

Tonight, the weekly oil stocks data from the American Petroleum Institute is released; consensus is builds all over and same same for tomorrow's EIA inventory report. The last 6 of 7 EIA weekly releases have shown builds of between 2.3-6.4M barrels in crude oil stocks. In the last two months of 2016, the balance was more mixed with 5 builds and 5 draws.

OPEC production for January is released on Monday. Currently, market consensus is around 80-90% compliance to the production cut deal, but expect huge volatility around the time of publishing.

As Venezuelan and Russian energy ministers met in Moscow to expand cooporation, they also discussed the oil producers' production cut deal. The parties stated that: "we share the view that this agreement will help stabilise the market situation".

Later today, U.S. job report and trade balance is published; other than that no major economic data releases today.

A/S Global Risk Management is a provider of customised hedging solutions for the management of price risk on fuel expenses. The company has offices in Denmark and Singapore. For further details about its risk management products and services, please call +45 88 38 00 00 or email hedging@global-riskmanagement.com.