Oil drops as oversupply worries resurface, API data eyed

After having settled almost flat a day before, oil prices on both the sides of the Atlantic turned negative on Tuesday, following bearish comments from the Venezuela’s oil minister and also amid risk-off market profile.

Oil eyes weekly supply reports

Currently, both crude benchmarks extend losses, with Brent down -0.39% at $ 45.78, while WTI drops -0.62% to $ 43.59. Oil prices continue to get affected by headlines from Venezuela, this time from the country’s oil minister noting that the global oil markets is oversupplied by 10%, and hence, needs to drop by 10% to reach an equilibrium.

Moreover, the prices also slipped amid chart-based sell-off, after the US oil failed to resist 45 handle, while Brent now looks to test two-week troughs reached just ahead of 45 mark.

Attention now turns towards the weekly crude inventory report from the API due to be released today, while the official government report will be published by the EIA tomorrow.