Oil rout extends amid weak fundamentals, risk-off

Oil prices on both the sides of the Atlantic fell sharply from weekly tops on the final trading day of the week, reversing a part of bullish EIA report-backed rally.

Oil eyes Fed speaks, weekly supply reports

Currently, both crude benchmarks extend decline, with Brent down -1.25% to $ 47.30, while WTI tanks -1.55% to $ 45.20. Oil prices add losses on Monday, having settled almost 4% down last Friday on the back of an increase in the oil rigs count.

The US drillers added oil rigs for a tenth week in the past 11, according to a Baker Hughes rig count report published on Friday. It was the longest streak without rig cuts since 2011.

Moreover, bearish CFTC report on oil further dampened the sentiment around the black gold. Speculative oil traders cut their net long US crude futures and options positions for a second consecutive week last week, the CFTC data showed Friday.

Going forward, the supply-side updates from the API and EIA will be closely eyed amid a data-heavy week ahead. While eagerly await any development related to a potential oil output freeze talks by some of the OPEC and non-OPEC producers, as we move closer towards their meeting in Algeria scheduled later this month.