Oil Dips in Asia on Oversupply Worries, API Report Eyed
Oil benchmarks
on both sides of Atlantic rebounded sharply from Doha disappointment
induced sharp losses the day earlier, only to find run through fresh
offers this Tuesday, as the supply glut worries resurface following
failed Doha negotiations last weekend.
Oil unperturbed by Kuwait strike news
Currently
both crude benchmarks are seen retreating lower, with WTI now losing
-0.56% at $ 40.96 while the Brent oil drops -0.61% to $ 42.65. Oil
prices stalled its overnight recovery mode and drifted in the red
territory in Asia as markets remain concerned over mounting oversupply
worries after major oil producers’ failed to strike a deal on output
freeze last weekend.
The cautious tone around the black gold can
be also explained by the increasing nervousness ahead of the weekly
crude reserves report from the API due to be published later today.
However,
the downside remains capped by reports of a sharp drop in oil
productions in response to an oil worker strike in Kuwait. Kuwait's
output has dropped to 1.1 million barrels per day (bpd) from 2.8 million
bpd due to a worker strike.
