Oil Eases-Off Multi-Week Highs, WTI Near $ 40
Oil benchmarks
on both sides of Atlantic paused its 2-day rally and dipped this
Tuesday, as the traders turned cautious ahead of the API and EIA
inventory reports.
Weekly stockpiles reports in focus
Currently
both crude benchmarks are seen in the red, with WTI down -0.50% to $
40.16 while the Brent oil drops -0.44% to $ 42.64. Oil prices ticked
lower this session as markets preferred to book profits on their oil
longs after two back-to-back sessions of extensive gains, as focus now
turns towards the crude stockpiles report from both the API and EIA.
Moreover,
a cautious tone prevailed in the markets as traders await the crucial
Doha meeting due to be held on Apr 17, with several major oil producers
scheduled to discuss the output freeze proposal.
Analysts at
Goldman Sachs noted, "A production freeze at recent production levels
would not accelerate the rebalancing of the oil market as OPEC
(excluding Iran) and Russian production levels have this year remained
close to our 2016 average annual forecast of 40.5 million bpd.”
Apart
from the weekly inventory reports, all eyes also remain on the OPEC’s
monthly report due to be published on Wednesday, while the monthly oil
report by the International Energy Agency (IEA) will be released on
Thursday.
(Market News Provided by FXstreet)
