Oil extends drop as supply worries resurface, API data eyed

Oil benchmarks on both sides of Atlantic extend the rout into a third day today, on the back of ongoing uncertainty related to the UK’s Brexit vote and a broadly stronger US dollar.

Oil awaits API report

Currently, both crude benchmarks extend losses, with Brent down -0.63% at $ 47.66, while WTI dips -0.73% to $ 46.26 levels. The black gold remains in the red this session, extending the bearish momentum from the previous session as mounting concerns over the after-effect of the Brexit decision on the global growth outlook continue to dampen investors’ sentiment.

Moreover, increasing supply risks as Nigeria's oil industry partially recovered from militant attacks amid Iran and Gulf members boosting supplies, also keeps any recovery limited in the oil prices.

While persistent broad based US dollar strength also collaborates to the bearish moods in the oil markets. Meanwhile, the USD index edges +0.17% higher at 96.43. A stronger greenback makes the dollar priced-in commodity more expensive for holders in other currencies.

Markets now await the API crude stockpiles report ahead of the FOMC minutes due later in the NA session.