European Outlook: Less Downside Now, But Caution Still Warranted

tweet at 4:32pm: #API Crude: +3.378M Cushing: +3.928M Gasoline: +0.620M Distillates: -1.929M #OOTTWTI Holds Losses After API Reports Biggest Cushing Build Since April 2020 Oil prices traded down today after punching up to seven-week highs with WTI back to a $79 handle after weak 'soft' survey data poured more cold water on the idea of a 'soft landing'., along with disappointing results from a handful of economic-activity bellwethers, such as Union Pacific and 3M. These results have tempered optimism for the economy in the near-term. Oil prices declined on "uncertainty about how much of a demand boost we'll see, and concerns over a weakening U.S. economy constrains the upside," said Michael Hewson, chief market analyst at CMC Markets U.K. "With the latest PMI numbers in US, Europe and the U.K. showing signs of weakness despite lower energy prices, some doubt is creeping in around any sort of rebound in economic activity," he said in market commentary. After two crazy weeks of inventory builds (in crude and at Cushing), all eyes are on this week's data as the impact of storms and deep-freezes begins to wear off.