Oil benchmarks on both sides of Atlantic rebounded sharply from Doha disappointment induced sharp losses the day earlier, only to find run through fresh offers this Tuesday, as the supply glut worries resurface following failed Doha negotiations last weekend.
Oil unperturbed by Kuwait strike news
Currently both crude benchmarks are seen retreating lower, with WTI now losing -0.56% at $ 40.96 while the Brent oil drops -0.61% to $ 42.65. Oil prices stalled its overnight recovery mode and drifted in the red territory in Asia as markets remain concerned over mounting oversupply worries after major oil producers’ failed to strike a deal on output freeze last weekend.
The cautious tone around the black gold can be also explained by the increasing nervousness ahead of the weekly crude reserves report from the API due to be published later today.
However, the downside remains capped by reports of a sharp drop in oil productions in response to an oil worker strike in Kuwait. Kuwait's output has dropped to 1.1 million barrels per day (bpd) from 2.8 million bpd due to a worker strike.