Oil Prices Slide Despite OPEC+ Cuts and Inventory Decline
The Energy Information Administration (EIA) reported a weekly inventory draw on crude oil inventories, but it failed to arrest the slide in crude oil prices. The US economy's current mood is the dominant factor in the oil market, and a build in gasoline stocks did not help. The Fed is expected to announce another rate hike, and Congress is locked in debt ceiling negotiations, neither of which is bullish for oil prices. A decline in diesel demand suggests a slowdown in US economic growth. Meanwhile, gasoline demand may be on its way down, too, with driving season around the corner.