Oil trades mixed, cautious before weekly inventory reports

Having witnessed a volatile session the day earlier, oil benchmarks on both sides of Atlantic are seen trading directionless in a tight range, as markets await the API inventory report for fresh momentum.

Both crude benchmarks on 43 handle

Currently, both crude benchmarks trade on a mixed note, with WTI modestly flat at $ 43.41 while Brent oil rises +0.39% to $ 43.81. Oil prices trade subdued and lacks momentum as traders remain on the back foot ahead of the weekly crude reserves report as well as monthly supply reports.

The US-based EIA releases its report later on Tuesday, while the Paris-based International Energy Agency is scheduled to post its estimates on Thursday, and oil cartel OPEC will unveil its monthly oil report on Friday.

Oil prices dropped sharply on Monday after omnipresent supply glut worries outweighed supply disruption fears spurred by the Canadian wildfires that have taken more than 2 million barrels a day of production out of the market.