Oil drops over 1% in Asia, Brent off 2016 highs

By FXStreet Having reached fresh multi-week highs in the previous session, oil benchmarks on both sides of Atlantic now attempt a minor correction in Asia this Tuesday, as focus now remains on the Chinese trade data and the API stockpiles report.

Oil eyes China trade data

Currently both crude benchmarks lost footing this session0, with WTI down -1.13% to $ 37.48 while the Brent oil drops -1.15% near 40.26. Markets see a minor correction in oil prices after the black gold jumped more than 5% the day earlier. Moreover, markets resorted to profit-taking ahead of the crucial Chinese trade data, which will shed more light on the Chinese oil demand.

Both oil benchmarks rallied to more than 2-month highs on Monday on talks of meeting amongst the Latin American crude producers to discuss oil prices, while reports that the major OPEC producers are talking about new oil price equilibrium of around $50, also underpinned the sentiment.

In the day ahead, markets will continue to closely monitor chatter on oil production freeze and probable meetings announcements amongst OPEC and non-OPEC producers for fresh cues on the prices. While the private crude reserves report from API will be also closely eyed.
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Source:: FX Street