Oil extends losses on bearish IEA monthly report

Oil prices on both sides of the Atlantic halted its recovery and dived deeper in the red in European session, after the IEA monthly report talked down on oil demand for 2016 and 2017.

WTI back to test $ 41 barrier

Currently, both crude benchmarks resume the downslide, with Brent down -1.20% at $ 43.51, while WTI drops -1.41% to 41.13. A tepid-bounce in the oil prices lost pace as risk-off intensified following mixed start to the European equities, with the black gold now accelerating further to the downside on the release of bearish IEA oil outlook report for Augsut.

Oil prices fell sharply on Wednesday in response to a surprise build in the US crude reserves. The US crude stocks expanded by 1.06 million barrels to 523.6 million barrels over the week to August 5, following a rise of 1.41 million barrels a week before. It marked the third straight weekly rise.

Oil markets remain focused on the Chinese industrial production and fixed asset investment data ahead of the US economic news as well as rigs count due Friday.