Oil prices tumbled back below pre-Saudi-attack levels today, near 2-month lows, as a global growth scare was sparked by disappointing PMIs around the world spooking the global energy demand bounceback narrative. WTI almost tested $52 handle intraday.
“Demand fears are overriding supply fears,” Phil Flynn, senior market analyst at Price Futures Group Inc., said by telephone.
Crude -5.92mm (+2.25mm exp)
After the previous week's surprise crude build, traders expected another notable rise in stocks, but were surprised when API reported a large 5.92mm draw.
Ahead of the print, WTI was trading well below the pre-Saudi attack levels...
WTI hovered around $53.70 into the API print and kneejerked back above $54 after the surprise draw...
“In view of subdued global economic prospects and rising U.S. oil production, any concerns” about oil supply tightening have evaporated, said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt.