Oil pauses rally as focus shifts to weekly supply reports

Oil prices on both the sides of the Atlantic pare gains and extend its retreat from yesterday’s extensive rally, as investors now turn wary ahead of the weekly supply reports due later in the week ahead.

WIT supported at $ 45

Currently, both crude benchmarks consolidate overnight gains, with Brent up +0.21% at $ 47.73, while WTI edges +1.85% higher at $ 45.29. Oil prices consolidate almost 5% rally witnessed yesterday, following reports that Saudi and Russia would work together to tackle a global glut, after having signed an oil pact on Monday.

Further upside in oil prices remain capped as markets digest the fact that the Saudi-Russia agreement is expected to yield no immediate action to limit output. While attention also turns towards the weekly crude stockpiles report due out from the US on Wednesday and Thursday, which may shape up the next direction for the balance of the week.