Oil extends losses for 3rd straight session, API report eyed

Oil benchmarks on both sides of Atlantic prolongs its selling spiral for the third straight session as traders remain wary heading into the weekly API inventory report.

Oil awaits June 2 OPEC meeting

Currently, both crude benchmarks dipped in Asia, with Brent down -0.52% at $ 48.09, while WTI oil drops -0.42% to $ 47.88. Oil prices drifted slightly lower this session, although extends its consolidative phase near multi-month tops, as markets await fresh impetus from the US supplies data that will be reflected by both the API and EIA weekly stockpiles report due today and tomorrow.

Oil prices regained ground somewhat yesterday after a report showed that crude inventories at the Cushing, Oklahoma delivery hub fell by about 979,000 barrels over the week to May 20. However, rising demand for the US dollar across the board on increasing June Fed rate hike expectations continues to weigh on the black gold. A stronger greenback makes dollar-denominated commodities more expensive in other currencies.

Looking ahead, all eyes remain on the June 2 OPEC meeting in Vienna, with markets almost pricing-out a coordinated output freeze plan.