US shale industry recovery weighs on prices, API estimate is in the limelight.
Crude futures extend losing streak declining to to two-month lows amid enduring fears global oversupply weighs down oil market.
US Oil futures for September delivery dropped 0.22% to 45.84/bbl., LSE traded Brent fell 0.30% to 46.82/bbl. On Monday crude prices tumbled 1.52% as Friday Baker Hughes report showed US drilling firms continue to ramp up crude output. According to the report the number of drilling rigs in the United States increased last week by 6 to 357, extending recovery for a third week.
Increasing drilling activity in the US fanned speculations production could increase in the coming weeks, reviving concern about an oversupply of commercial crude stockpiles in the country.
Brent futures curbed declines amid fading worries about supply disruptions in Turkey sea ports as coup attempt in the country failed.
Oil bidders are now focused on fresh weekly data on stockpiles of crude oil and petroleum products. The American Petroleum Institute is to release its weekly account on crude stockpiles today, while official EIA estimate is due on Wednesday. Official data is expected to show a cut by 2.3M barrels in US commercial crude inventories which can potentially help energy market to head for rebound in this week.
More fundamental forecasts and educational material are available at Brokerarena.com