Oil drops for 3rd straight session, OPEC report eyed

Oil benchmarks on both sides of Atlantic extend their downward trajectory into a third consecutive day today, weighed down by bearish US rigs count data and ongoing China slowdown fears.

OPEC report in focus

Currently, both crude benchmarks are down over 1%, with Brent defending 50 barrier, while WTI trades around 48.50 levels. The rise in the US active rigs coupled with increasing US oil output levels dampened the sentiment around black gold.

The number of active rigs in the US increased by 3 to a total of 328 over the week to June 10, oilfield Services Company Baker Hughes noted on Friday. It was the first time since August 2015 that the rig count has booked an increase two weeks in a row.

Moreover, weaker than expected China’s industrial production, fixed asset investment and retail sales data also spooked the oil markets. China is the world’s second largest oil consumer.

Focus this week remains on the weekly supply reports from the API and EIA along with the OPEC’s monthly oil report. While traders will also closely watch for the USD price-action over the upcoming days as the Fed commences its two-day monetary policy meeting on Tuesday.