he oil market is fixated on macro-economic issues and not necessarily current supply or demand. The weak ISM service sector number added to oil demand fears even as data showed the global oil demand growth in August.
While the oil futures market failed to focus on the bullish aspects of the report because of the worries about a global manufacturing slowdown, the truth is that a slowdown in petroleum demand is not showing up in U.S. data.
The oil inventory report is not fitting the bearish narrative that is being exposed as global manufacturing data takes a dive.
Oil prices got crushed at an end of the quarter, holiday-thinned market. Weak global manufacturing numbers, as well as claims by Saudi Aramco that production is restored, found the oil market lacking a bid.
Oil prices are in a light volume haze as many traders celebrate Rosh Hashanah. This comes as the Saudi Crown Prince is making dire warnings about the price of oil if we go to war with Iran.
The crude oil market is caught in an impeachment trap yet a late-breaking story may give oil direction.  Saudi Arabia agrees to a partial cease-fire in Yemen.
Secretary of State Mike Pompeo announced a crackdown on Chinese shipping companies and tanker firms for continuing to carry Iranian crude after sanctions waivers ended in May.
Oil prices sold off hard as word spread that Speaker of the House Pelosi was going to announce a so-called “formal Impeachment” inquiry of President Donald Trump.
Britain, France, and Germany are now blaming Iran for this month’s attacks on Saudi Arabia. UK Prime Minister Boris Johnson, President Emmanuel Macron of France and Chancellor Angela Merkel of Germany issued a joint statement where they agreed that Iran was responsible.
Not only are we getting mixed messages about how fast Saudi’s oil production can recover from last weekend’s attack but we are also getting mixed messages on the state of the global economy with weak manufacturing data coming out of Europe.