Image credit: Global Risk Management

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Bullish oil inventory report from the Energy Information Administration (EIA) caused an oil price increase yesterday. The weekly EIA report showed larger-than-expected draws all over. Crude oil stocks fell by 4.1 mio. barrels, distillates by 2.1 mio. barrels and gasoline by 2.3 mio. barrels. According to the report, gasoline demand rose to record-high just like the crude oil production which came at a record 10.9 mio. barrels last week, surpassing OPEC's top producer Saudi Arabia and closing in on Russia (11.1 mio. barrels per day so far in June).

Supporting oil prices was an alleged exchange of words between the U.S. and Iran regarding oil prices. Oil prices have increased approx. 60% since the initiation of the current oil production cut deal between OPEC and a row of non-OPEC countries. The oil producers will discuss the deal during the meeting in Vienna on 22-23 June.

The International Energy Agency (IEA) yesterday published it monthly oil market report. The Agency kept oil demand growth forecast for 2019 unchanged at 1.4 mio. barrels per day along with oil production growth forecast to be 1.7 mio. barrels per day.

Turning to economic data, the Fed yesterday raised interest rates, but it came as no surprise to the markets and no major reaction followed. Overnight, Chinese Industrial Production came out lower than expected. Also, the country's May refining activity dipped to 11.93 mio. barrels compared to 12.06 mio. in April. Today, is heavy on economic data with among others Euro Zone interest rate decision is published, along with U.S. retail sales and EU inflation data.