Daily Market Briefing
Yesterday saw heavy volatility with an intraday swing in Brent oil price of more than $2, but eventually the price fell back to where it started; just above $65-level.
Tonight, the weekly oil stocks data from the American Petroleum Institute (API) is published. Last week saw heavy drops in U.S. crude oil stocks from both the API and the Energy Information Administration (EIA) – this week consensus is a small build in crude oil stocks, draws in distillates and gasoline stocks.
Rumour has it that OPEC and non-OPEC oil producers, which agreed on a production cut from January 2019 will delay a planned meeting in April to discuss the production policy. Now May or June meeting seems more likely according to market comments. Continued production cuts are supportive for oil prices.
Potentially weighing on oil prices is news of a lifting of the force majeure at Libya’s biggest oil field, El Sharara, after months of closure. The oil field’s output capacity is around 315,000 barrels per day. Libyan oil is of very high quality.
Turning to the economic data front, today’s main events will likely be the U.S. housing data and ISM Non-Manufacturing PMI as well as UK Services PMI. Eyes are on comments about a potential Chinese plan to roll out an economic package to spur growth in the huge country after it cut its economic growth target from 6.0-6.5% this year which is down from last year’s 6.6%. Negotiations between the U.S. and China on trade dispute are still ongoing.