Crude Oil prices traded lower during the European session as Prices Fail to Benefit from Middle East Tensions after armed drones struck two oil pumping stations in Saudi Arabia in the same week that Saudi oil tankers were attacked in the region. Oil traders are paying more attention to news from the American Petroleum Institute of a large surprise build in crude inventories of 8.6 million barrels in the week ending May 10. Saudi Arabia said Tuesday that drones had hit oil pumping stations near its capital, Riyadh just two days after an attack on oil tankers off the coast of the United Arab Emirates – but the news had only a limited impact on crude prices, suggesting the path of least resistance is downwards.
Moreover, the International Energy Agency said Wednesday that rising US output is filling the gap left by US sanctions on Iran and Venezuela that have restricted output from these two major exporters. It also said that global demand for crude in 2019 would be less than it had previously forecast.