Oil keeps the red in Asia, supply glut concerns weigh

Having dropped more than 1% on Monday, oil benchmarks on both sides of the Atlantic maintain the offered tone in the Asian trades this Tuesday amid persistent oversupply worries.

Oil awaits API report

Currently, both crude benchmarks trade moderately lower, with Brent down -0.32% at $ 46.81, while WTI trades -0.39% lower at $ 45.76 levels. Oil prices stalled its minor-recovery mode in early Asia and came under renewed selling pressure as the demand for risk assets took a hit after risk-off returned to markets in wake of mixed trading activity seen on the Asian equities.

Oil prices kicked-off the week on a bearish note on Monday, after the latest crude stockpiles data reignited fresh supply glut fears into the markets.

Market intelligence firm Genscape reported that the Cushing, Oklahoma delivery hub for US crude futures saw a supply build of 26,460 barrels in the week to July 15. Moreover, a latest Reuters poll projecting a ninth straight weekly drop in US crude stockpiles also failed to offer some support to the prices.

Focus now turns towards the weekly crude supply reports from the API and EIA due today and tomorrow respectively, which will shed fresh light on the supply-side scenario and therefore, will provide a fresh direction to the black gold.