Oil keeps losses as rising output outweighs OPEC deal

Oil prices on both sides of the Atlantic keep the corrective mode intact from multi-month highs, as sentiment remains sour amid rising production levels from OPEC and Russia.

Oil awaits weekly US supply reports

Currently, both crude benchmarks remain in the red, with Brent around $ 54.60 while WTI drops -1% to $ 51.30 levels. Oil prices extend weakness into Europe, after reports hit the wires that the OPEC crude output increased sharply and set another record high, joining Russia in increasing output levels.

The reports refueled supply glut concerns in an already oversaturated oil markets, and overshadowed renewed optimism triggered by last week’s OPEC output cut deal.

Next of relevance for oil markets remains the US private sector oil inventories data due to be published by API later today, while the official government figures from the EIA will be released tomorrow.

Brent oil technical levels

A break above $55.00 (zero figure) could yield a re-test of the multi-month highs of $55.33 (multi-month tops). On the lower side, breach of support at $54.36 (Daily low) would expose the psychological support of $53.50.”