Oil Extends Retreat from 2016 Highs on Rising OPEC Output

Oil Extends Retreat from 2016 Highs on Rising OPEC Output

2 May 2016, 08:49
Roberto Jacobs
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Oil Extends Retreat from 2016 Highs on Rising OPEC Output

Oil benchmarks on both sides of Atlantic faded a tepid bounce and fell back in the red this Monday, extending its retreat from fresh 2016 tops.

Oil: weekly inventory reports eyed

Currently, both crude benchmarks are seen in the red, with WTI down -0.78% to $ 45.56 while Brent oil slips -1.06% to $ 46.87. Oil prices are seen trading with moderate losses as the sentiment soured once again on reports of rising crude productions. According to the latest reports, OPEC pumped 32.64 million barrels per day (bpd) in April, which is a rise from 32.47 million bpd booked in March.

However, the losses remained capped amid broad based USD weakness and bullish report from oilfield services company, Baker Hughes, noting that the number of active oil rig dropped by a further 11 last week to 332.

In the week ahead, besides, a slew of key US macro updates, focus also remains on the fresh weekly stockpiles reports due on Tuesday and Wednesday, which may provide fresh direction for the black gold.


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