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Brent oil price tested $70 several times yesterday and closed above - the highest close in more than three years. At the time of writing, Brent price is just below $70.

Several OPEC members and non-OPEC member Russia have over the past days repeated that the current oil production cut deal will remain throughout 2018 despite the current elevated oil price levels. Target of the production cut deal is to bring down global crude oil inventories to five-year average and stabilise prices.

Meanwhile, all eyes are on U.S. shale oil production. The current oil price level seems highly attractive for shale oil producers and last week's oil rig count showed an increase in the number of active rigs of 10. Further, market drums speak of shale oil producers having hedged a large portion of their flow out until 2020 - meaning they would be able to keep pumping even during a drop in prices without losing money. Shale oil wells - compared to conventional wells - are relatively easily opened and closed by producers as prices and conditions change. Unlike conventional wells, shale oil wells deplete at a rapid pace and the average lifespan of a shale oil well is around 3 years. So drillers need to open new wells in order to keep production flowing.

Note: due to yesterday's holiday in the U.S., the inventory reports are a day delayed and oil stocks data from the American Petroleum Institute will therefore be published tomorrow evening instead of tonight. The same goes for the EIA oil inventory report, which is published Thursday afternoon.

Turning to economic data, today sees UK CPI and PPI (inflation data). Tomorrow, Eurozone inflation is published.