Oil Dips in Asia On Profit-taking After 3 Weekly Rises
Oil benchmarks
on both sides of Atlantic failed at higher levels and retreated over 1%
from five-month tops in Asia this Monday, after a rebound in the US
dollar late Friday continues to weigh on the black gold.
Supply reports, FOMC in focus
Currently,
both crude benchmarks are seen extending to the downside, with WTI
sliding -1.42% to $ 43.11 while Brent oil drops -1.09% to $ 44.58. Oil
prices dropped in the Asian trades after having booked three straight
weeks of gains, as traders appear to lock-in gains heading into global
central banks’ action dominated week.
Moreover, a rebound in the
US dollar on Friday against a basket of major currencies, further
weighed on the oil prices. While markets ignored the bullish oil rigs
count report, which showed that the US rigs-count dropped for a fifth
straight week and to levels last seen in November 2009. A total of 343
rigs were drilling for new oil last week. That compares to over 700 this
time last year, according to oil services company Baker Hughes on
Friday.
Later this week, besides FOMC and RBNZ, focus also remains on the weekly crude stockpiles reports from both the API and EIA.
