Oil retreats from weekly highs, API report in focus

Oil prices on both sides of the Atlantic extend its corrective slide into the European trading hours, having booked almost 3% gains on Monday.

WTI back below $ 43 mark

Currently, both crude benchmarks are seen correcting lower, with Brent just below $ 45 while WTI hovers around $ 42.65 levels. Oil prices failed to sustain the recent bullish run and turned negative this session, as lingering supply glut worries resurfaced ahead of the release of fresh US stockpiles report later in the day.

On Monday, the black gold surged to the highest levels in seven days after renewed oil output freeze talks returned to markets, in light of the recent oil price declines.

Markets now look forward to the American Petroleum Institute (API) weekly US stockpiles report, which will be released later on the day, while the official data from the US government (EIA) will be published on Wednesday.

Further, all eyes also remain focused on OPEC’s monthly oil report due out on Wednesday, which will reveal the cartel’s monthly oil production.