Back
25 Apr 2016
Oil dips in Asia on profit-taking after 3 weekly rises
Oil benchmarks on both sides of Atlantic failed at higher levels and retreated over 1% from five-month tops in Asia this Monday, after a rebound in the US dollar late Friday continues to weigh on the black gold.
Supply reports, FOMC in focus
Currently, both crude benchmarks are seen extending to the downside, with WTI sliding -1.42% to $ 43.11 while Brent oil drops -1.09% to $ 44.58. Oil prices dropped in the Asian trades after having booked three straight weeks of gains, as traders appear to lock-in gains heading into global central banks’ action dominated week.
Moreover, a rebound in the US dollar on Friday against a basket of major currencies, further weighed on the oil prices. While markets ignored the bullish oil rigs count report, which showed that the US rigs-count dropped for a fifth straight week and to levels last seen in November 2009. A total of 343 rigs were drilling for new oil last week. That compares to over 700 this time last year, according to oil services company Baker Hughes on Friday.
Later this week, besides FOMC and RBNZ, focus also remains on the weekly crude stockpiles reports from both the API and EIA.
Supply reports, FOMC in focus
Currently, both crude benchmarks are seen extending to the downside, with WTI sliding -1.42% to $ 43.11 while Brent oil drops -1.09% to $ 44.58. Oil prices dropped in the Asian trades after having booked three straight weeks of gains, as traders appear to lock-in gains heading into global central banks’ action dominated week.
Moreover, a rebound in the US dollar on Friday against a basket of major currencies, further weighed on the oil prices. While markets ignored the bullish oil rigs count report, which showed that the US rigs-count dropped for a fifth straight week and to levels last seen in November 2009. A total of 343 rigs were drilling for new oil last week. That compares to over 700 this time last year, according to oil services company Baker Hughes on Friday.
Later this week, besides FOMC and RBNZ, focus also remains on the weekly crude stockpiles reports from both the API and EIA.