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By Michael Poulson, A/S Global Risk Management

The weekly oil stocks data from the American Petroleum Institute (API) pointed to a nearly 3 mio. barrel-build in crude stocks. Distillates and gasoline stocks grew as well - by 2M and nearly 5M barrel-build - so volatility will likely be high ahead of this afternoon's EIA oil inventory report. It is the third consecutive week of growth in crude oil inventories in the U.S. recorded by the API. Consensus for this afternoon's report is 2.8M build in crude, 0.5M build in gasoline and 1M draw in distillates stocks.

Saudi Arabia's oil output in January could drop to 9.9 mio. barrels per day, down from 10.47 mio. barrels in December. A sign that OPEC intents to walk the talk of cutting oil production over the next 5-6 months.

Libya has increased its oil output to around 2-year highs, 0.715M barrels per day, trying to ramp up production after years of dwindling production due to unrest and fighting. The country intends to increase output to 1.25M bpd by the end of this year. Libya is exempt from the OPEC production cut deal.

The UK Brexit decision - triggering of Article 50 to leave the EU - must be approved by the parliament according to Supreme Court ruling of yesterday. The ruling is likely not a major game changer, but could further hasten the process to deliver the official exit requirement which is set to end-March by the prime minister.

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A/S Global Risk Management is a provider of customised hedging solutions for the management of price risk on fuel expenses. The company has offices in Denmark and Singapore. For further details about its risk management products and services, please call +45 88 38 00 00 or email hedging@global-riskmanagement.com.