Oil extend losses in Europe on supply glut worries

Oil prices on both sides of the Atlantic extend weakness into the European session, consolidating yesterday’s steep losses as oversupply concerns remain unabated.

Oil weaker on stronger dollar

Currently, both crude benchmarks remain in the red zone, with Brent down -0.50% around $ 45.60 while WTI drops -0.83% to $ 44.30. Oil prices are seen extending yesterday’s losses as markets remained wary over resurgence of oversupply concerns, in response to the latest bearish IEA monthly report and crude stockpiles data.

Analysts at ANZ noted, "Crude oil prices fell as the focus returned to supply growth. The IEA suggested prices may continue to retreat amid relentless supply growth unless OPEC makes significant supply cuts." 

Moreover, ongoing strength in the US dollar on the back of renewed optimism on Trump’s presidency also collaborates to the poor sentiment around oil markets. A stronger US dollar makes the USD-denominated commodity expensive for the buyers in foreign currencies.

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