Oil stockpiles could be reduced by a rate of about 760,000 barrels a day in the first half of next year if OPEC and 11 other oil producers deliver on the deal to implement supply cuts, according to data from the International Energy Agency. In just the first six months after the implementation of the deal, almost 46 percent of the 300 million-barrel stockpile surplus will be cleared. We should note however that achieving this target would require full compliance with the almost 1.8 million-barrel cut promised by the Organization of Petroleum Exporting Countries.
Markets in Europe are seen lower today as the markets focus on the upcoming meeting of the Federal Reserve. Europe is also rejoicing over a newly found stability in Italy where the recently appointed Italian Prime Minister Paolo Gentiloni has unveiled the names for his caretaker government. Italy’s new PM is keeping most of the ministers from the executive led by Matteo Renzi. The European Commission was quick to announce that is willing to discuss options for Italian banks on Monday. Tuesday’s calendar will also be in focus as today we are expecting to see the release of euro zone unemployment figures and inflation figures in the U.K.
China’s industrial production and retail sales grew more than expected in November, suggesting a stronger than expected growth rate. Indicatively, production growth improved to 6.2 percent from 6.1 percent in October, according to data released by the National Bureau of Statistics on Tuesday. It is worth noting that analysts were expecting no change. Retail sales also advanced 10.8 percent, which is also faster than the 10 percent expansion seen in October. This marks the fastest growth since last December. Today’s strong data suggest that China’s recovery will be heading strong into 2017.