Oil Dives Deeper in the Red on Mounting Oversupply Worries
Oil benchmarks
on both sides of Atlantic accelerated to the downside in the Asian
trading hours, as resurgence of oversupply worries into the markets
dampened the sentiment around the black gold.
Oil: EIA inventory report in focus
Currently both crude benchmarks are extending losses, with WTI now
sliding -2.21% at $ 41.53 while the Brent oil drops -1.98% to $ 43.16.
Oil prices snapped its previous rebound and fell sharply lower after
news hit the wires that Kuwaiti oil workers ended a three-day strike
that had cut production from the Middle Eastern country.
The prices came under renewed selling pressure in the Asian session
after the API crude stockpiles data showed a bigger than expected rise
in the US crude supplies last week, accentuating the pain in the already
saturated oil markets. Crude inventories rose by 3.1 million barrels in
the week to April 15 to 539.5 million, compared with analysts'
expectations for a rise of 2.4 million barrels.
The black gold is expected to remain under pressure in the day ahead, as
markets expect the US EIA inventory report to show an increase of 1.6
million barrels in crude reserves. While light US economic data on the
cards is expected to have limited impact on the dollar-denominated oil
prices.
