Crude Oil Retreats After Inventory Build – Demand Outlook Remains Fragile
Crude Oil Retreats After Inventory Build – Demand Outlook Remains Fragile
Crude oil prices fell sharply on Wednesday after U.S. inventory data surprised to the upside. WTI contracts dropped more than 1 % as traders reassessed the global demand outlook and await OPEC+ direction.📊 Market Overview – NYMEX WTI Futures
🌍 Key Market Drivers
- U.S. Crude Inventories RiseAccording to the EIA, U.S. crude oil stocks increased by 5.2 million barrels last week, surprising traders who expected a draw. Gasoline and distillate stocks also rose.
- Demand Outlook UncertainDespite the summer travel season, refined product demand indicators remain soft. Diesel consumption, in particular, has not recovered to pre-pandemic levels.
- OPEC+ in FocusTraders are watching for any official signals ahead of the June OPEC+ meeting. So far, no formal announcements have been made about extending voluntary cuts.
- Macroeconomic HeadwindsGlobal growth concerns, sticky inflation in Europe, and sluggish industrial activity in China keep the demand narrative weak.
💼 Trading Strategy & Outlook
Crude is back under pressure and testing key support levels. Unless OPEC+ intervenes or inventory trends reverse, downside risk persists.Recommendations:– Sell rallies toward $62.50–63.00– Buy only on confirmation of demand signals or OPEC+ action– Use options to hedge summer price risks