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Brent oil prices briefly climbed above $68 yesterday, but at the time of writing the price is slightly down to below that figure.

The weekly oil inventory report from the Energy Information Administration (EIA) yesterday pointed to another huge draw in crude oil stocks of 7.4 mio. barrels while distillates and gasoline showed huge builds of 8.8 and 4.8 mio. barrels respectively. Crude oil inventories are now around 424.46 mio. barrels. Refiners increased activity to 2005 highs, turning crude into products and production was around 9.78 mio. barrels. Refiners tend to ramp up the utlization rate in an attempt to run down crude oil stocks by year-end as taxes are paid based on the crude oil stock level at the end of the year. The blizzard with heavy snowfall and high winds causing disruptions in oil supplies and likely causing increased demand for heating oil in the country.

Geopolitics: tensions in Iran continue to support oil prices. Communication between North and South Korea has been resumed after more than two years of silence.

Tonight, the weekly oil rig count from Baker Hughes will be published; the last 3 weeks have seen unchanged number of active oil rigs. The data is followed closely as it is considered a proxy of increase/decrease in oil production.

Turning to economic data, yesterday's U.S. job reports pointed to improved job conditions, but this afternoon's non-farm payrolls will give further indications to the economic situation in the country. Today also Eurozone inflation data is released; so we could see some volatility in the economic market, which could spill over to the oil market. .