The OPEC+ cuts still are not doing very much to boost oil prices, dashing hopes for many U.S. shale producers. With companies in the process of formulating their budgets for 2019, the prospect of $50 oil sticking around raises questions about the heady production figures expected from the U.S shale patch.
Traders and market participants closely watch supplies at the hub because it is the delivery point for the futures contract and underpins nearly all other regional crude grades.
“The Cushing number came in higher than anticipated. … It’s definitely pointing to the concern that there’s more supply and demand is weakening, slowing economic growth in China, Europe drags on oil markets (Adds settlement milestone)” said Phil Flynn, an analyst at Price Futures Group in Chicago.