Oil Drops to 2-Week Lows on Rising US Crude Reserves
Oil benchmarks on both sides of Atlantic prolongs its downward trajectory for the seventh straight session this Thursday, hitting fresh two-week lows on omnipresent supply glut concerns.
US crude reserves hit record for 7th consecutive week
Currently both crude benchmarks are seen hovering near two-week troughs, with WTI losing -1.15% to $ 37.87 while the Brent oil drops 1% to $ 39.67. Oil prices extend their losing streak into early Europe as resurgence of oversupply fears following a continued rise in the US crude stocks for the seventh straight week weighed on the sentiment around the black gold.
EIA weekly report showed stockpiles in the US expanded by 2.3 million barrels over the week to March 25, and hit a new record high of 534.8 million barrels.
Moreover, a rebound in the US dollar after heavy selling seen earlier this week also contributed to the bearish momentum in oil. Meanwhile, the US dollar index recovers 0.16% to 95 handle.
For further oil price action, markets await crucial US macro releases in the upcoming sessions, while the US rigs count report due tomorrow is also eagerly awaited.
(Market News Provided by FXstreet)