Oil sits at 3-month lows ahead of EIA inventory report

Oil benchmarks on both sides of the Atlantic extend its run of losses for the fifth straight session, as worries of gasoline stocks build and growing oil supplies continue to dent investors’ sentiment.

Oil eases ahead of EIA stockpiles report

Currently, both crude benchmarks trade in the red, with Brent down -0.33% at $ 45.06, while WTI trades -0.35% at $ 42.77. Oil prices trade on a weaker footing as sentiment remains weighed down by mounting oversupply concerns and as high gasoline inventories also worry markets. Gasoline stocks in the US are at 241 million barrels, a level more than 12% above the five-year average, said S&P Global Platts.

As Market Watch reports, “The worry is that the swelling glut of gasoline will prompt refiners to buy less crude oil going forward, causing the global glut of crude to linger longer and put prices under pressure.”

Next in focus for the black gold remains the official government crude stockpiles report published by the EIA and Fed policy decision due later in the NA session.