Oil extends losses ahead of EIA inventory report

Oil prices stalled a sharp rebound witnessed in the US last session and now extend its overnight decline into early Europe, as investors digest bearish API crude stockpiles data.

Oil awaits EIA report

Currently, both crude benchmarks extend the downside, with Brent down -1.14% at $ 49.40, while WTI drops -1.37% to 47.44 levels. Oil prices resumed the recent downbeat momentum, after the API report showed that the US crude reserves rose by 4.464 million barrels, marking the biggest build in crude supplies in four months.

Moreover, renewed fears over the Chinese oil demand in wake of Beijing clamped down on alleged tax evasion in the oil industry also drove the latest leg lower in the oil prices.

Later today, the official government crude inventory report will be published by the by the EIA, which will provide fresh insights on the supply-side scenario. While the black gold is also likely to get influenced by USD moves ahead of the Jackson Hole Symposium, starting tomorrow.