Oil back in the red in Asia, API report eyed

Oil prices on both the sides of the Atlantic is seen reversing a part of yesterday’s brief rebound, led by a sudden weakness in the US dollar, following Fed’s Brainard’s more dovish comments on the rate hike outlook.

Oil attention to weekly supply reports

Currently, both crude benchmarks turn negative, with Brent down -0.75% at $ 47.97, while WTI tanks -0.84% to $ 45.90. Oil prices extend its overnight retreat and now consolidate the downside, as investors await fresh impetus from the upcoming US supply report for next direction.

While the bears remained unperturbed by better-than expected Chinese activity data, as investors’ appetite for risk assets remain subdued amid persistent uncertainty over Fed’s interest rate outlook, which has a significant impact on the USD-sensitive oil.

Moreover, bearish CFTC report as well as rising US rigs count also continues to weigh on the sentiment around oil markets, while focus now remains on the weekly crude stockpiles report from the API due later in the NA session.