Oil retreats after Monday’s 3 percent rally

Oil prices inched lower in Asia following a 3% rally on Monday as glut worries remain intact despite speculation of OPEC action.

At the time of writing, WTI Oil was down 0.58% or 25 cents at $42.77/barrel. Brent oil was down 0.60% or 0.27 cents at $45.12/barrel.

Both benchmarks rallied sharply on Monday after reports hit the wires that OPEC members are to have an informal meeting in September. Qatar’s Energy Minister and OPEC President were on the wires as well stating the oil market rebalancing is in progress despite recent decline in oil prices.

However, glut fears still persist. It is feared that oil market rebalancing may drown in gasoline inventory buildup. The weekly API data in the US will be released later today and the government data is scheduled for release on Wednesday.