Oil Steadies in Asia ahead of API Inventory Report
Oil benchmarks on both sides of Atlantic ease-off fresh multi-month tops on Tuesday, correcting the previous rally, as focus now turns towards the API crude inventory report lined up for release later today.
Brent sits at 8-month highs
Currently, both crude benchmarks are trading modestly flat, with Brent struggling to regain 50.50, while WTI hovers around 49.60 levels. The bulls appear to have taken a breather after having rallied sharply a day before, as oil traders now await fresh supply reports to gauge next direction.
The black gold is finding support from a weaker US dollar since last Friday after the US jobs data disappointed markets big time, while yesterday’s slightly dovish tilt observed in Yellen’s remarks also added to the greenback’s downslide across the board and hence, boosted the dollar priced-in commodity. A relatively weaker US dollar makes the dollar denominated oil cheaper in other currencies.
Meanwhile, markets await fresh impetus from any fundamental news, while the API inventory report due later today is eagerly awaited. Moreover, markets also remain wary whether oil prices will sustain above $ 50 mark and for how long.