Oil Dips in Asia on Global Oversupply Woes
Oil benchmarks
on both sides of Atlantic set-off the week on the bearish note, dipping
in the Asian trades against a backdrop of omnipresent supply glut
concerns.
Oil awaits weekly stockpiles report
Currently, both crude benchmarks keep the red, with Brent down -0.47% at
$ 48.49, while WTI oil drops -0.64% to $ 48.10. Oil prices fell as
markets ignored recent supply outage reports as well as unchanged US
rigs count data and remained concerned over persisting global crude
oversupply worries. Global oil supply has still outstripped demand by
around 1.5 million barrels per day, Russian Energy Minister Alexander
Novak said on Friday.
Moreover, the recent strength seen in the US dollar against its major
peers, on the back of increased bets of a June Fed rate hike, also
weighs on the dollar-priced in black gold. Later this week, all eyes
remain on the usual weekly crude inventory reports from both the API and
EIA, while OPEC meeting scheduled on June is eagerly awaited by the oil
traders for any hint on output freeze/ cut.
