Oil extends gains ahead of EIA inventory report, Fed

Oil prices on both the sides of the Atlantic extend its rebound from the previous session, as the bulls continue to cheer the bullish API report and firmer Japanese imports data.

Oil eyes EIA report, Fed for fresh moves

Currently, both crude benchmarks extend the upside, with Brent up +1.53% at $ 46.58, while WTI rallies +2.04% to test $ 45 mark. Oil prices built onto Tuesday’s gains after the Japanese trade deficit worsened in the reported month, however, showed a rise in oil imports, signaling stronger demand from the world’s fourth largest oil consumer.

On Tuesday, the black gold staged a solid rebound from multi-week troughs after the API inventory data reported a draw in oil inventories last week. The American Petroleum Institute (API) data showed a 7.5 million barrel draw to 507.2 million barrels in the US crude stocks, the third straight weekly stock draw.

Later today, markets eagerly await the official government inventory report from the US, while the Fed decision will also remain in focus for fresh direction on the US dollar, eventually impacting the USD-sensitive oil.