Oil trims bullish API report-led gains, awaits EIA inventory data

Oil benchmarks on both sides of Atlantic pare gains, although keeps the bid tone intact in response to bullish API stockpiles report, while attention now turns towards the US EIA inventory report due later  today.

Oil awaits EIA report

Currently, both crude benchmarks trim gains, with Brent up 0.27% at $ 48.93, while WTI trades +0.36 higher at $ 47.62 levels. The black gold rose in the Asian trades after markets cheered bullish API crude reserves report, which showed that the US crude stockpiles fell by 6.7 million barrels over the week to July 1.

The upbeat API report offset mounting global growth concerns and offered the much-needed support to oil prices. Moreover, broad based US dollar strength on the back of a cautious tone highlighted by the FOMC minutes, also added to the rebound in oil prices. A stronger greenback makes the dollar priced-in commodity more expensive for holders in other currencies.

However, the gains may remain limited as markets turn cautious ahead of the EIA inventory as well as the US jobs report due later in the NA session.