Oil Corrects Lower ahead of Rigs Count Data, OPEC Report
Oil benchmarks
on both sides of Atlantic corrected lower on the final trading day of
this week, reversing course from fresh 2016 peaks reached in the
previous session on improved demand outlook.
OPEC report – Key focus
Currently, both crude benchmarks trade in the red, with Brent down
-0.62% at $ 47.79 while WTI oil drops -0.77% to $ 46.34. Oil prices
dipped in the Asian session as markets resorting to taking profit off
the table after the black gold climbed to the highest levels since
November 2015. Thursday’s oil-price rally was triggered by EIA report
showing that the crude oil reserves in the US shrank unexpectedly by 3.4
million barrels last week.
Moreover, the IEA released a day before reflected a bullish outlook for
oil, noting that global oil markets are heading towards a long-awaited
balance as crude supplies will shrink "dramatically" later this year.
Oil traders now turn cautious and remain on the back foot ahead of the
US rigs count data, OPEC monthly report and a fresh batch of crucial US
macro data, all of which will be released in the day ahead.
