FXStreet (Mumbai) – Oil benchmarks on both sides of Atlantic fell back in the red and resumed their dominant bear trend in Asia, reversing the bounce seen on Thursday.
Iranian supply prospects weigh
Currently, WTI drops -1.46% to 30.74, while the Brent oil slides -0.73% to 30.77. Oil prices failed to sustain the previous recovery and returned to the negative territory as investors continue to weigh the prospects of Iranian oil entering an already oversupplied markets. Western sanction on Iranian oil exports is expected to be lifted any time soon within upcoming days.
Moreover, the rising crude reserves in the US as reflected by EIA report also continue to dampen the sentiment around the black gold. The US EIA showed that crude reserves expanded by 234,000 barrels in the week to January 8 as compared to a 200k rise expected.
On Thursday, both crude benchmarks saw a solid rebound beyond $ 31, having posted first day of significant gains for 2016, on the back of correction after markets viewed that oil has found a bottom near $ 30 mark, the lowest levels in over 12 years.
(Market News Provided by FXstreet)