The Energy Information Agency (EIA) reported another storage drawdown in Cushing Oklahoma but the latest drop was minor. Nevertheless, it extends the run of drawdowns to 5 successive prints but has struggled to meaningfully propel oil prices higher. Drawdowns imply that demand for oil remains strong, and in some cases may be increasing. This is typically positive for oil prices.
Oil markets have struggled to advance in 2024 thus far -weighed down by concerns around the worsening global economic outlook. Europe has dodged a technical recession by the narrowest of margins and China struggles to fend off widespread deflation and a beleaguered property sector.