Oil pauses sell-off ahead of API report

Oil prices on both sides of the Atlantic took a pause from its ongoing selling spiral, as investors now turn their attentions towards the weekly API inventory report for next direction.

Oil drops amid oversupply concerns

Currently, both crude benchmarks attempt minor-recovery, with Brent down -0.90% at $ 48.70, while WTI drops -1.12% to 46.88 levels. Oil prices stalled its downslide and now consolidate the sharp declines seen over the last trading session.

However, the risk remains to the downside after Goldman Sachs warned that August's price rally was excessive and that a proposed oil output freeze at current near-record levels would not help rein in an oversupplied market.

While reports of a jump in China’s fuel exports also exacerbated the pain in already saturated oil markets. For further hints on the supply scenario, investors now await the weekly crude stockpiles report due today and tomorrow. Later today, the American petroleum Institute will publish its weekly crude inventory data.