Oil: Recovery Loses Steam Ahead of API Report, FOMC
Oil benchmarks
on both sides of Atlantic stalled the rebound seen in the Asian session
and fell back in the red zone as focus now shifts towards the weekly
supplies reports and FOMC verdict.
Oil shaves-off gains
Currently,
both crude benchmarks are seen reverting to the negative territory,
with WTI down -0.14% to $ 42.58 while Brent oil slips -0.20% to $ 44.22.
Oil prices faded a minor-recovery during the Asian trades and resumed
the recent bearish momentum as markets turned cautious heading into the
weekly API inventory report, which expected to show a build in the US
crude reserves.
Earlier today, the black gold staged a minor
bounce after the US dollar weakened across the board amid expectations
that the Fed will stay on hold at its monetary policy meeting this week.
However, overall the prices remain vulnerable amid reports of more
supplies from Saudi and Iran likely to flow into markets and lowered oil
price forecasts by major oil analysts.
Meanwhile, the oil
traders also refrain from placing big bets on increased nervousness
ahead of the FOMC meeting commencing later today.
