WTI crude oil sinks on inventories, settles $3.02 lower to $69.51

<p>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.</p><p>The selling in oil started shortly after the oil future open for the day as <a href="https://www.forexlive.com/news/private-oil-survey-data-shows-headline-crude-oil-draw-20230621/" target="_blank" rel="follow">API data showed</a> 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.</p><p>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.</p><p>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.</p><p>In FX, despite the 4% declines in both oil and natural gas, the Canadian dollar is holding tight near 9-month highs.</p>

This article was written by Adam Button at www.forexlive.com.