Oil Sits at Fresh Multi-Month Highs, US Draw Underpins
Oil benchmarks on both sides of Atlantic continue to flirt with eight-month tops amid ongoing USD selling and falling US crude supplies.
US rigs count data eyed
Currently, both crude benchmarks are extending into the green, with Brent at 52.76, while WTI keeps range near 51.50 levels. The latest news of shrinking US supplies was confirmed after the EIA inventory report showed that the US crude reserves dropped by 3.23 million barrels over the week to June 3, almost in line with a fall of about 3.26 million barrels estimated.
Moreover, the black gold also found support from ongoing tensions in Nigeria, which has sent Nigerian oil output to a 20-year low. Therefore, traders continue to monitor global supplies scenario amid persistent broad based US dollar weakness led by dwindling Fed hike bets. Markets now look forward to Friday’s US rig count data for further momentum on oil.