7 to 13 September: Eventful week ahead with a full economic diary

Crude oil prices were under pressure for much of last week. As a result, Brent crude price (for November delivery) fell 6.6% by the end of Friday to USD 39.99/bbl, whilst the WTI crude price (for October delivery) registered a 6.1% decline, slipping to USD 37.60/bbl. One of the key triggers for the fall of oil prices was triggered by Saudi Arabia and Kuwait cutting their official selling prices (OSPs) to some Asian countries. OSP cuts in the past usually signalled a weakness in overall demand for oil. Meanwhile, stockpiles in the US rose, as refineries slowly return to operations after production was shut due to storms in the Gulf of Mexico. Lower oil prices – especially for a prolonged period – are beneficial for many Asian countries, who are not importers, such as India and Pakistan.

We are facing an exciting week with Chinese macro data in the pipeline for Tuesday. And, it is Fed week! This will be the first meeting when the Federal Reserve will announce its policy decision within the new “average inflation targeting” framework. This week will be eventful from oil’s point of view as well. Today, OPEC releases their monthly report on the August production numbers together with the outlook for the rest of the year and 2021. Later on Thursday, the OPEC+ Joint Ministerial Monitoring Committee will meet.

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