International crude Oil futures continued to decline on Wednesday. Institutions released views stating that the sluggish U.S. economic data brings expectations that demand will continue to decline in the market.
The Federal Reserve Beige Book shows that economic activity in most districts has been flat or declined in recent weeks, and the probability of the Federal Reserve cutting interest rates by 50 basis points in September has increased significantly.
As for crude oil itself, the market is still expecting OPEC+ to change its production increase plan. In fact, according to the current demand situation, OPEC+ needs to further deepen production cuts for oil prices to possibly continue to be strong. Crude oil inventories are at a low level, and the structure of crude oil is still in backwardation.
Demand for refined oil products is weak and inventories are slightly high. The price structure of some refined oil products has gradually changed to contango, such as heating oil in the United States. Data from the American Petroleum Institute shows that petroleum inventories are all declining. The EIA may be similar. Under the low inventory pattern, the probability of oil prices fluctuating again still exists.
Reproduction Notes：InvestFancy » U.S. Economic Data is sluggish, Oil Prices continue to decline