Oil rebounds 1% in Asia on looming Norway strike, USD retreat

Oil benchmarks on both sides of Atlantic finally brought an end to its 3-day extensive sell-off spurred by Brexit and bounced higher this Tuesday as an impending strike in Norway offer the much-needed respite to the oil markets.

Oil eyes API inventory data

Currently, both crude benchmarks are rebounding nearly 1% this session so far, with Brent at $48.22, while WTI extends towards $ 47 mark. Oil prices halted its losing streak as overall market sentiment improved amid a profit-taking spree across the board after the Brexit aftermath.

Further, the recovery in the oil prices is largely underpinned by a looming strike in Norway that threatens to cut output in Western Europe's biggest producer. As Reuters reports,” About 755 Norwegian workers on seven oil and gas fields could go on strike from Saturday, hitting output from the North Sea's top producer, if a new wage deal is not agreed before a Friday deadline.”

On Monday, the black gold slumped to fresh seven-week lows on the back of the Brexit-vote backed uncertainty and a massive USD rally, which makes dollar denominated commodity more expensive for holders in other currencies.

Looking ahead, the weekly crude stockpiles report from the API is closely eyed along with the US GDP figures, which may have major impact on the US dollar.