Crude Oil WTI ICE Futures Market News and Commentary
Aug WTI crude oil (CLQ22) on Wednesday closed down -1.98 (-1.77%), and Aug RBOB gasoline (RBQ22) closed down -12.09 (-3.14%).
On Wednesday, crude oil and gasoline prices erased an early rally and closed moderately lower. Crude prices Wednesday morning initially rose to a 1-1/2 week high after weekly EIA crude inventories fell more than expected. However, signs that record-high gasoline prices are causing demand destruction weighed on prices. Also, a rally in the dollar index (DXY00) Wednesday to a 1-1/2 week high undercut energy prices.
Weaker-than-expected global economic data Wednesday was bearish for crude demand and prices. U.S. Q1 GDP fell -1.6% (q/q annualized), weaker than expectations of -1.5% and the steepest pace of contraction since Q2 of 2020. Also, Eurozone Jun economic confidence fell -1.0 to a 15-month low of 104.0. In addition, the Japan Jun consumer confidence index unexpectedly fell -2.0 to a 17-month low of 32.1.
The prospect of addition... Read more