WTI crude oil fell $3.02 to settle at $69.51 as the oil market priced in a recession once again. This time it was more central bank hiking weighing, along with mixed US inventory reports.
The selling in oil started shortly after the oil future open for the day as API data showed product builds. The official EIA data was better but not good enough to reverse the momentum and shortly after the release, the bulls threw in the towel, adding the final $1 of selling to the day's decline.
We're now into the peak two months of the US driving season and the oil bulls will desperately want to see stronger signs of demand.
In July, Saudi Arabia will cut production by an additional 1 million barrels per day and US SPR sales will wrap up so that should tilt balances towards a tighter market but much of that is already priced in so it will take some kind of big surprise to get oil off the $65 floor.
In FX, despite the 4% declines in both oil and natural gas, the Canadian dollar is holding tight near 9-month highs.