Overview

• Oil prices have come off their recent highs amid signs of slowing demand and easing supply constraints.
• U.S. crude inventories fell recently while gasoline stockpiles rose sharply, pointing to weaker consumption.
• Saudi Arabia and Russia have extended their voluntary production cuts through year-end.
• Some analysts say oil prices are still inflated and could fall further on economic headwinds.
• After rallying, energy stocks have declined with the drop in crude prices.