Image credit: Global Risk Management

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Yesterday, the American Petroleum Institute (API) reported that U.S. crude oil inventories fell 1.05 mbbl, gasoline inventories fell 2.47 mbbl and distillates fell 0.85 mbbl. The crude inventories in Cushing, Oklahoma, which is an oil hub in an area with very high production, were reported to have fallen as well by about 1 mbbl. It would be the first draw since early March, and If the Energy Information Administration (EIA) confirms these draws later today, demand last week has been fairly strong concluding that oil fundamentals likely explained part of last week's price rally.

On Friday, the Joint Ministerial Monitoring Committee (JMMC), which is an entity designed along with the OPEC+ production cut agreement to monitor the compliance rates to the agreement, will meet in Jeddah. The official OPEC meeting is in June in Vienna, but already the agenda of that meeting has started to leak; Kuwait oil minister said that an extension of the deal into 2019 was to be discussed.

As further information about the agenda on the official OPEC meeting in June could be leaked around the JMMC meeting on Friday, additional volatility is expected during the week.

For now the next event to look out for is the EIA inventory stats later today.