Oil prices dipped lower today, back to basically unchanged since Saudi's production cuts were announced as persistent economic uncertainty weighs on the outlook for demand.

Saudi Arabia’s production cuts “will take some supply off the market, but demand will need to continue to rise if we are to see much higher prices,” said&nbsp;Dennis Kissler, senior vice president of trading at BOK Financial Securities.

The next sign we get is from API tonight (after last week's surprise crude build) for signs of demand slowing.

Crude stocks, according to API, unexpectedly drew-down last week but products saw unexpectedly large builds (distillates biggest weekly build since Dec 22).

WTI was hovering around $71.50 (pre-Saudi cuts) ahead of the API print and barely moved on the inventory data.

Finally, we note that the Biden administration sold another 1.8 million barrels of crude last week from the SPR - down to a fresh 40-year low.

...the Biden admin sold another 1.8 million barrels of crude last week from the SPR - down to a fresh 40-year low.
{ai:summary}Oil prices remain stable despite production cuts by Saudi Arabia due to uncertain economic conditions affecting demand. The American Petroleum Institute's report on last week's inventory data shows unexpected crude draw-downs but larger-than-anticipated builds for distillates. WTI prices remained around $71.50 ahead of the API report, and the Biden administration sold another 1.8 million barrels of crude from the SPR, reaching a new 40-year low. #economy

WTI Drops Below Pre-Saudi-Cut Levels After API Signals Big Product Builds

Loading...