Oil Swings Higher in Asia, Weekly Supply Reports Eyed
Oil benchmarks on both sides of Atlantic kicked-off the week on a firmer note, climbing higher this Monday, and expectant of the weekly crude reserves data from the US amid broad based US dollar correction.
Oil awaits fresh impetus
Currently, both crude benchmarks are trading with moderate gains, with Brent flirting with $50 mark, while WTI oil also hovers around 49 handle. Oil prices stalled the rebound seen in the Asian session, although keeps gains as focus now shifts towards the US crude inventory reports due later in the week for fresh cues on the oil fundamentals.
Last week, markets cheered a drop in the (EIA) crude stockpiles, while a decline in the US crude production also keeps the sentiment buoyed around oil markets. The US crude production slipped to 8.735 million barrels per day last week, posting the 12th straight week of declines, while the current supply is the lowest since the first week of September 2014.
Next in focus for the black gold remains the speech from Fed Chair Yellen due later today, which will provide further momentum on the US dollar moves, especially after Friday’s US NFP disaster. A weaker US dollar makes dollar-denominates commodities cheaper for holders in other currencies.