Oil extends rally, Brent above $ 51 ahead of US rigs data

Oil prices on both sides of the Atlantic traded firmer in early Europe, breaking higher from a brief phase of consolidation witnessed during the Asian session, as focus now shifts towards the US rigs count report due later today.

Oil eyes US rigs count data

Currently, both crude benchmarks regained upbeat momentum, with Brent at two-month highs just ahead of $ 51 barrier, while WTI rises +0.71% to 48.55 levels. Oil prices resumed its uptrend this session, prolonging its upward trajectory for the seventh straight session.

The sentiment around the black gold remains lifted on the back of the recent broad USD weakness amid Fed rate hike uncertainty. While upbeat EIA inventory report combined with increased expectations of a potential OPE’s production freeze action on the cards at its meeting next week, also boosts oil prices.

Traders remain wary ahead of the fresh rig count data that will be published later on the day. The active oil rig count in the US has risen without pause for seven weeks, signalling more production ahead.