US light crude WTI is trading at below $40 a barrel, and investors are cautious as later today will be published data on the reserves in the US, reported CNBC.
Futures on WTI decreased by 0.20% to $39.98 a barrel after the previous session, the price fell below this psychological barrier for the first time since April. The European benchmark Brent depreciated by 0.05% to $42.12 a barrel.
The recovery in oil prices can be rather fragile and soon market participants can witness sales as oversupply still prevails.
Later today will be published the report by the American Petroleum Institute, which will have data on reserves in the US last week. On Wednesday, is coming the official data of the Energy Information Administration.
Last week, stocks of crude oil and gasoline recorded a larger than expected growth, there was an increase in the number of oil rigs. However, the number is about 77% lower compared to the record of October 2014.
“The USD oil rig count continues to rise, raising concerns about increasing supply at a time when seasonal factors will soon cause a fall in global demand,” commented analysts at BNZ Markets.
The oil market is struggling with oversupply since the summer of 2014, when prices began to collapse. Some analysts suggest that they will not increase significantly until next year.
Next week will be published the monthly report of OPEC, and investors will closely monitor the data on monthly yield. According to Reuters yields in the cartel will increase to 33.41 million barrels a day in July from 33.31 million barrels in June.