Oil bounces 1% in Asia, awaits API inventory report

By FXStreet Oil benchmarks on both sides of Atlantic found fresh bids in the Asian trades and rebounded higher after the previous slide from fresh yearly highs.

Oil: API report in focus

Currently, both crude benchmarks are seen correcting to the upside, with WTI up +1% at $ 45.22 while Brent oil also gains +1.03% to trade at $ 46.28. Oil prices attempted a minor-recovery this Tuesday, after having booked 3% loss the day earlier. However, the recovery looks fragile as rising Middle East output raised renewed concerns of a global supply glut. While dismal Chinese factory data released earlier today, also weighs on the investors’ sentiment.

According to the latest reports, Iraqi exports hit a near-record 3.36 million barrels a day in April, while Iran’s production during the month reached 3.5 million barrels per day, the most since December 2011.

Attention now shifts towards the weekly API crude stockpiles report due to be published later in the NY session, which will provide fresh hints on the demand for the black gold in the world’s biggest oil consumer.
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Source:: FX Street