Oil dips in Asia on record high crude stockpiles

Oil benchmarks on both sides of Atlantic snapped previous rebound and fell back in the red on resurgence of oversupply worries following bearish API report.

EIA weekly inventory report in focus

Currently, both crude benchmarks trade modestly flat, with WTI at $ 44.59 while Brent oil at $ 45.52. Oil prices weakened in the Asian trades as markets reacted negatively to the API inventory data release. Oil stockpiles in the US grew by 3.45 million barrels to a record 543.1 million barrels during the week ended May 6, the API report showed. Markets had predicted rise of about 500,000 barrels.

Black gold treads water as markets turn cautious ahead of the EIA weekly crude reserves data, with markets expecting a small jump in US crude inventories of 80,000 barrels, after a jump of 2.8 million barrels a week before.

Oil prices rebounded on Tuesday after the EIA published its monthly oil report, suggesting the oil demand to pick-up, which will lead the prices to rebound higher, particularly in the latter half of next year.