Oil prices shed again

This pretty much sums up the way the oil market has been performing for the past two months, the oil price yesterday again shedding all of its considerable gains of the day before. 

The US inventory data can hardly be blamed for the price slide. Admittedly, crude oil stocks did increase somewhat more sharply than expected, by 2.85 million barrels. However, gasoline stocks reduced by 3.3 million barrels at the same time - their most pronounced decline since the beginning of May. 

"Instead, we attribute the weak prices to the strong US dollar and to the market's psychology given that the Brent price is unable to gain a lasting foothold above the psychologically important $50 per barrel mark. For any decisive change in direction at least one key component is missing - namely a solid and sustained decline in US oil production", states Commerzbank.