Oil corrects lower after bullish EIA report-led rally

Oil prices on both sides of the Atlantic extends correction into Europe, after markets take profits off the table ahead of key US employment numbers due in the week ahead.

Oil: Attention turns to US NFP and rigs count data

Currently, both crude benchmarks trade subdued, with Brent down -0.37% at $ 51.67, while WTI drops -0.44% to $ 49.61. Oil extends weakness so far this session, mainly driven a fresh bout of profit-taking as markets resort to locking-in gains ahead of the crucial US labor market report, which is expected to have major impact on the US dollar, and hence, eventually on the USD-denominated black gold.

Oil rallied to the highest levels since June after the EIA inventory report showed fifth straight week of crude stocks drawdown, adding to the recent OPEC deal-led optimism around oil. The US crude inventories fell 3 million barrels last week to 499.74 million barrels.

Looking ahead, investors turn cautious ahead of the US rigs count data due for release on Friday.