Oil turns lower in Europe, bearish EIA report weighs

Oil benchmarks on both sides of the Atlantic faded a minor-rebound staged earlier in the Asian session, and now turns lower, as oversupply worries continue to outweigh broad based US dollar weakness.

Oil eases in early Europe

Currently, both crude benchmarks defend gains and trade almost muted, with Brent just below $ 44, while WTI tests 42 barrier. Oil prices erased entire gains as sentiment soured after the European traders hit their desks and react negatively to the latest bearish US stockpiles report.

The EIA showed on Wednesday, crude reserves expanded by 1.671 million barrels in the period ending July 22, while the market had forecast a drop of 2.250 million barrels.

Moreover, increasing US oil production amid already saturated oil markets, also adds to the supply glut concerns haunting investors’ mind.

Focus now shifts towards a fresh batch of US macro updates due in the week ahead for fresh incentives on the greenback, which may eventually impact the USD-denominated black gold.