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.
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.
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.