At 09:10 GMT, Light Crude Oil Futures are trading $63.07, up $0.22 or +0.35%.
Saudi Price Cuts and OPEC+ Supply Moves Weigh on Sentiment
Crude came under pressure midweek after Saudi Arabia reduced its July selling prices to Asia to the lowest in nearly two months. While the cuts were milder than expected, they reflect soft demand in a region typically driving summer buying strength.
The timing follows OPEC+’s decision to raise July output by 411,000 barrels per day, signaling that major producers are prioritizing market share even as demand signals waver. This coordinated action from Saudi Arabia and Russia is seen as an attempt to discipline over-producers and tighten control of global supply dynamics.
Refiners Drive Crude Draw, But Fuel Demand Falls Short
Weekly EIA data delivered a mixed message. U.S. crude stocks dropped by 4.3 million barrels to 436.1 million, outpacing expectations and driven by a strong increase in refinery runs. Utilization rose to 93.4%, suggesting refiners are preparing for peak seasonal demand.
Yet product supplied of gasoline, a reliable demand indicator, unexpectedly fell by 1.2 million barrels per day to 8.3 million—raising red flags. This disconnect between refinery activity and end-user demand triggered large builds in gasoline (+5.2 million barrels) and distillate inventories (+4.2 million barrels), undermining the bullish signal from the crude draw.
U.S. Demand Underperforms Despite Summer Driving Season
Despite the post-holiday kickoff to the U.S. driving season, demand remains sluggish. The gasoline supply drop came at a time when consumption typically rises.
