Oil: Recovery loses steam ahead of API report, FOMC

Oil benchmarks on both sides of Atlantic stalled the rebound seen in the Asian session and fell back in the red zone as focus now shifts towards the weekly supplies reports and FOMC verdict.

Oil shaves-off gains

Currently, both crude benchmarks are seen reverting to the negative territory, with WTI down -0.14% to $ 42.58 while Brent oil slips -0.20% to $ 44.22. Oil prices faded a minor-recovery during the Asian trades and resumed the recent bearish momentum as markets turned cautious heading into the weekly API inventory report, which expected to show a build in the US crude reserves.

Earlier today, the black gold staged a minor bounce after the US dollar weakened across the board amid expectations that the Fed will stay on hold at its monetary policy meeting this week. However, overall the prices remain vulnerable amid reports of more supplies from Saudi and Iran likely to flow into markets and lowered oil price forecasts by major oil analysts.

Meanwhile, the oil traders also refrain from placing big bets on increased nervousness ahead of the FOMC meeting commencing later today.