Oil dips for a second consecutive day despite Saudi decision to cut production output this weekend in efforts to bolster oil prices. 

According to Bloomberg News, the market is not concerned about supply at the moment, but about the demand falling short of expectations. 

The reason being sluggish economic recovery in China after the harsh Covid lockdowns. Moreover, a crash landing could be imminent in the US due to the Fed’s tight monetary policy and frequent interest rate hikes. 

”The demand outlook remains an overriding theme,” confirms Yeap Jun Rong, a Singapore-based market strategist for IG Asia, to Bloomberg News. 

The latest figures from American Petroleum Institute, API, confirms sufficient crude inventories. According to anonymous sources, the figures show that the US crude stockpiles in Oklahoma increased by 1.5 million barrels last week. 

Brent crude futures goes for USD 75.93 on Wednesday morning, down from USD 77.20 on Monday afternoon. Meanwhile, US West Texas Intermediate trades at USD 71.42, down from USD 71.92.

English edit: Katrine Gøthler