Oil Pumps, Then Dumps After Conflicting Reports Over Saudi Recovery

Crude futures gapped dramatically higher at the open overnight, WTI back above $59, after WSJ headlines over the weekend that Saudi Arabia’s recovery could take “eight months” rather than weeks.

But, prices are tumbling this morning following Reuters reports denying this ‘news’, claiming that Aramco will succeed in restoring its lost production by the end of this month.

However, in context, prices are still significantly higher than before the refinery attack.

Additionally, this morning’s dismal German PMIs did not help matters on the global demand side.

“It’s tug of war between weak demand fundamentals and heightened geopolitical risks,” said Jens Naervig Pedersen, a senior analyst at Danske Bank A/S in Copenhagen.