Oil extends losses on API inventory build, EIA report eyed

Oil prices on both sides of the Atlantic extend losses into Europe this Thursday, facing double whammy ahead of the EIA crude stockpiles data due later today.

Oil awaits EIA data

Currently, both crude benchmarks extend the downside, with Brent down -0.60% at $ 51.48, while WTI drops -0.72% to 49.81. Oil prices drop for the third-day in a row on reports that OPEC output levels have reached almost eight-year highs. The OPEC pumped 33.39 million barrels per day (bpd) last month, up 220,000 bpd from August.

Moreover, bearish API crude reserves data showed an increase in stockpiles, which further dampened the sentiment around oil. The API reported that the US crude inventories rose by 2.7 million barrels to 470.9 million barrels in the week to Oct. 7, marking the first rise in oil stocks following five straight weeks of declines.

However, the downside remains cushioned amid a jump in the Chinese crude imports data, as reflected by China customs today. China's crude import rose 18% from a year earlier to 33.06 million tonnes in September, hitting a record daily rate of 8.04 million barrels per day (bpd).

Focus now remains on the official US government report on crude stockpiles due later in the NA session for next direction on the commodity.