Oil extends retreat ahead of US rigs data eyed

Oil benchmarks on both sides of Atlantic extend the retreat from seven-month peaks and now looks to breach $ 49 mark, as the bulls take a breather ahead of the US rigs count and GDP data.

Oil extends correction   

Currently, both crude benchmarks extend to the downside, with Brent down -0.81% at $ 49.18, while WTI oil eases -0.77% to $ 49.10. Oil prices extend its corrective slide into a second day today, although remains poised for third straight weekly rise.

The black gold retreated from multi-month tops, after having found strong resistance at $ 50 threshold, while re-emergence of oversupply concerns. Moreover, broad based US dollar pullback after yesterday’s slide, also weighed somewhat on the dollar-priced in commodity.

However, the downside may remain capped amid geo-political tensions persisting in Nigeria. While markets await Fed Chair Yellen’s speech, the US GDP figures for fresh insights on the US interest rates outlook. Further, the weekly US rig count report will also remain in focus, after Oilfield Services Company Baker Hughes revealed a steady performance the week before.