|Oil stocks, Iran deal and European central bank meeting in focus|
|By A/S Global Risk Management.
|Updated on 11 Jan 2018 09:31 GMT
|Huge draw in weekly crude oil stocks supports prices ahead of the next oil stocks data this afternoon.
The weekly oil inventory report from the Energy Information Administration (EIA) confirmed Tuesday's API oil stocks data with huge draw in crude oil, considerable builds in gasoline and distillates inventories. The draw in crude oil stocks was only half of the API data though. U.S. crude oil production fell slightly last week. Immediate market reaction was a short spike in oil prices followed by a sharp drop and at time of writing Brent oil price is hovering around $69.
EIA oil inventory data:
Crude oil: -4.95 mio.
Distillates. +4.25 mio.
Gasoline: +4.14 mio.
Change in refinery runs: -1.40%
Tomorrow is deadline for the U.S. president accepting (or not accepting) a continuation of the waivers of oil-related sanctions on Iran. Trump refused to issue the waiver in October where he stated that Iran is not complying with the deal (nuclear deal from 2015 between Iran and a row of countries). Since sanctions against Iran was lifted, the country's oil production as well as exports have increased, see below chart.
Non-OPEC oil producer Kazakhstan continues to increase oil production this year after already increasing production last year from 78 mio. tonnes to 86.2 mio. tonnes in 2016.
Turning to economic data, today sees ECB December meeting minutes, U.S. inflation data along with German GDP and U.S. jobs data. .
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 email@example.com.