FXStreet (Mumbai) – Oil prices at both the sides of the Atlantic rebounded on account of short covering, but gains were quickly erased on concerns of oversupply.

Brent futures erased gains and now trade 23 cents lower on the day at USD 48.38/barrel. Meanwhile, WTI futures were largely unchanged around US 46.20/barrel.

Prices dropped more than 3% on Monday as a weak China industrial production data and a drop in the third quarter GDP heightened concerns of global growth slowdown.

Traders now wait for the weekly supply data in the US. As per the Reuters survey, crude stocks in the US most likely rose for a fourth straight week, climbing last week by 3.7 million barrels to 472.3 million barrels.

Industry group the American Petroleum Institute (API) will report its stocks data later today, while the US Department of Energy’s Energy Information Administration (EIA) will release oil inventory data on Wednesday.

Oil prices at both the sides of the Atlantic rebounded on account of short covering, but gains were quickly erased on concerns of oversupply.

(Market News Provided by FXstreet)

By FXOpen