Since last week Brent has traded around the highest levels in 2019 in a narrow range. Last night, however, oil prices dropped heavily, around the same time as the U.S. president repeated a call for OPEC keeping oil prices steady after Brent oil price had increased by more than 8% over the past couple of weeks. Although nothing fundamentally has changed this is probably a sign that the market is looking for direction. Brent oil price lost more than $2 as it went from about $67 to about $64.65, which sent ripples throughout the product markets as well. At time of writing, Brent oil price is around $64.8.
Supporting the up-side is the increasing expectations of the trade war between the U.S. and China not escalating further as the U.S. president on Sunday stated that he would extend the March 1 deadline for implementing new tariffs. As the global economy likely has been hurt by the trade war such signals are considered bullish.
Tonight, the weekly oil stocks data from the American Petroleum Institute (API) is published one day ahead of the official Energy Information Administration (EIA) data. Consensus for the EIA data is a 3.5 mio. barrel-build in crude oil stocks, drops in gasoline and distillates inventories. The last 5 weeks have shown builds in U.S. crude oil inventories according to the EIA.