Oil corrects lower after surprise inventory draw-led rally

Oil prices on both sides of the Atlantic are seen easing-off multi-month highs, on the back of a minor correction after yesterday’s extensive rally backed by bullish EIA inventory report.

Oil consolidates near yearly tops

Currently, both crude benchmarks trade in the red, with Brent down -0.50% at $ 52.41, while WTI drops -0.60% to 51.51. Oil prices paused its 2-day rally and retreated slightly this Thursday, as investors resorted to profit-taking after the black gold reached the highest levels since July 2015 a day before.

Further, broad based US dollar strength, triggered by Clinton’s final presidential election debate-win, also weighed on the USD-denominated commodity somewhat. The USD index rises +0.13% to trade around 98 handle.

Oil rallied to more-than one-year high after the EIA crude inventory report surprised to the upside, as the US crude stocks unexpectedly dropped by 5.2 million barrels in the week ended Friday, squashing markets’ expectations for a build.

Focus now remains on the upcoming US data and Friday’s rigs count report for further momentum on oil prices.