Oil keeps the red amid thin markets, OPEC meeting in focus

Oil benchmarks on both sides of Atlantic prolongs its upside consolidation phase near multi-month highs and keeps losses, as all eyes now turn towards the upcoming OPEC meeting for fresh direction.

Oil steadies ahead of weekly supply reports, OPEC meet   

Currently, both crude benchmarks edge lower, with Brent down -0.50% at $ 49.69, while WTI oil eases -0.34% to $ 49.16. Oil prices extend their side-way movement into a fourth-day today; consolidating the recent rally to $ 50 mark, as markets remain cautious and refrain from placing any directional bet ahead of the OPEC meeting in Vienna on June 2. Markets, however, believe that no change will be implemented on the output levels, largely due to a strong disagreement between Iran and Saudi Arabia.

The black gold trades with moderate losses as markets digest Friday’s rigs count data, although a stronger US dollar amid rising June Fed rate hike expectations is likely to keep any recovery in the oil prices short-lived.  Next in immediate focus remains the API and EIA weekly stockpiles report ahead of the OPEC meeting and US payrolls data due latter part of this week.