Oil dips in Asia ahead of US API report, Yellen

Oil benchmarks on both sides of Atlantic stalled its 2-day rally and fell back in the red in response to the cautious tone prevalent in the markets as Brexit vote looms.

Brent keeps $ 50 mark

Currently, both crude benchmarks are down about -0.60%, with Brent at 50.30, while WTI trades near 49.60 levels. Oil prices resumed its broader downtrend after witnessing two straight sessions of gains as the demand for the black gold took a hit after the latest Brexit polls turned out mixed and poured cold water on Bremain hopes somewhat.

Moreover, a broad based US dollar recovery also weighed down on the dollar denominated commodity. While increased nervousness ahead of the weekly supply reports further dampens the sentiment around oil.  The American Petroleum Institute (API) crude inventory report is expected to show a fall of about 1.5 million barrels for the week to June 17.

Next of note remains the Yellen’s testimony, which begins later today and is likely to have major influence on the USD price-action, eventually impacting the dollar priced-in oil.