Oil benchmarks on both sides of Atlantic paused their corrective rally following the release of International Energy Agency (IEA) monthly report.
IEA report reflects a bearish picture for oil
Currently both crude benchmarks retreat from daily highs, with WTI rising 2.41% to 30.41 and the Brent oil up 1.22% to 33.30. The ongoing recovery in the oil prices, following a three-day decline, lost steam after IEA noted in its monthly oil outlook report that the global oil surplus at the start of 2016 is “even greater” than initially expected.
The black gold came under renewed pressure and trimmed gains as the latest IEA report added to the already persisting oversupply concerns. While the Paris based agency also shrugged off any chatter surrounding OPEC/non-OPEC producers’ meeting to bolster prices.
Attention now remains on the EIA and OPEC monthly report due later this week, while the inventory report from the EIA as well as API will be also closely eyed.