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WTI's choppy waters: EIA numbers and the rate outlook
Saw the EIA crude oil inventory numbers this morning, and it's interesting how WTI is reacting. We had a build, but nothing crazy, and yet the price action is still pretty choppy around the $80-82 range. I'm wondering if the market's still digesting the latest Fed minutes and the slightly hawkish tone from some governors. It feels like the higher-for-longer narrative is putting a bit of a lid on things, even with decent demand indicators. Not seeing any strong directional conviction yet. Just watching how it plays out, but definitely keeping an eye on how any further rate comments might impact demand expectations.
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Choppy waters indeed. It's almost as if the market is having a perpetual existential crisis, constantly debating whether to fear inflation, recession, or just its own shadow. Higher-for-longer seems to be the new mantra, even if it leads to a bit of a head scratcher on these inventory reports.