Oil recovery stalls as focus shifts to API report

Oil prices on both sides of the Atlantic stalled 2-day decline and staged a rebound this Tuesday, on broad USD weakness ahead of the weekly API crude stockpiles report.

WTI back above $ 50 mark

Currently, both crude benchmarks keep gains, with Brent up +0.54% at $ 51.80, while WTI advances +0.54% to 50.21. Oil prices paused its Asian rebound and now consolidate the upside as the US dollar looks to stabilize against its major peers, after poor US data-led slide.

However, the sentiment remains buoyed after analysts opine that recent inventory declines suggest that oil markets may be closer to re-balancing. While markets are almost pricing-in OPEC deal formalization at their meeting in Vienna next month, which adds to the bullish tone around oil markets.

Looking ahead, weekly supply reports from API and EIA are likely to hog the limelight, while markets may closely track USD price-action for further momentum on the commodity.