On next Tuesday, EIA will release short-term forecast for oil production and prices. The focus is on forecasts of the US oil output. The rise in oil prices should stimulate US producers to increase production, spoiling OPEC's plans to raise prices by cutting its own supply. Against the background of lockdowns getting more stricter in some parts of the world, oil may come under pressure next week, testing $50 mark in spot WTI.

December US CPI as well as EIA oil commercial reserves data are due on Wednesday. The pace of consumer prices growth in the US is likely to fall short of expectations, as lockdowns hit employment and consumption in December, which held back consumer spending, and hence largely held inflation pressures in check. The US retail sales report, which is due on next Friday, is likely to confirm that gloomy projection.

On next Thursday, the ECB is to publish a statement on monetary policy, which is expected to have little surprise for the market. German GDP data is also likely to have a limited effect on markets, as the effects of lockdowns and government measures have already been factored into asset prices.