Oil Extends Losses for 3rd Straight Session, API Report Eyed
Oil benchmarks
on both sides of Atlantic prolongs its selling spiral for the third
straight session as traders remain wary heading into the weekly API
inventory report.
Oil awaits June 2 OPEC meeting
Currently, both crude benchmarks dipped in Asia, with Brent down -0.52%
at $ 48.09, while WTI oil drops -0.42% to $ 47.88. Oil prices drifted
slightly lower this session, although extends its consolidative phase
near multi-month tops, as markets await fresh impetus from the US
supplies data that will be reflected by both the API and EIA weekly
stockpiles report due today and tomorrow.
Oil prices regained ground somewhat yesterday after a report showed that
crude inventories at the Cushing, Oklahoma delivery hub fell by about
979,000 barrels over the week to May 20. However, rising demand for the
US dollar across the board on increasing June Fed rate hike expectations
continues to weigh on the black gold. A stronger greenback makes
dollar-denominated commodities more expensive in other currencies.
Looking ahead, all eyes remain on the June 2 OPEC meeting in Vienna,
with markets almost pricing-out a coordinated output freeze plan.
