Oil inches higher on improved sentiment, EIA report eyed

Oil benchmarks on both sides of Atlantic extended their post-Brexit recovery mode for the second straight session today, as sentiment remains upbeat amid fading Brexit shock.

Oil eyes $ 50 mark

Currently, both crude benchmarks extend the rebound, with Brent up +0.37% at $49.44, while WTI jumps +0.60% to $ 48.13 levels. A better risk tone prevalent in the markets amid increased expectations of stimulus measures likely to be implemented by policymakers in wake of the Brexit decision, keeps the sentiment around the black gold buoyed.

Moreover, a weaker US dollar across the board also supports the upside in the oil prices. The US dollar index, which measures the relative strength of the greenback against a basket of six major currencies, slides -0.07% to fresh daily lows of 96.10 levels.

However, the gains appear limited as the recent bearish API report weighs on the investors’ minds. The API report showed that the US crude stockpiles rose by 1.5 million barrels in the last week, after dropping 3.5 million in the previous week and far above the expected 1.4 million barrel drop.

The focus remains on the EU Summit, as officials in both the EU and UK will be discussing the Brexit vote, while the EIA inventory report will be also eagerly awaited for fresh direction on oil.