Oil corrects lower ahead of rigs count data, OPEC report

Oil benchmarks on both sides of Atlantic corrected lower on the final trading day of this week, reversing course from fresh 2016 peaks reached in the previous session on improved demand outlook.

OPEC report – Key focus

Currently, both crude benchmarks trade in the red, with Brent down -0.62% at $ 47.79 while WTI oil drops -0.77% to $ 46.34. Oil prices dipped in the Asian session as markets resorting to taking profit off the table after the black gold climbed to the highest levels since November 2015. Thursday’s oil-price rally was triggered by EIA report showing that the crude oil reserves in the US shrank unexpectedly by 3.4 million barrels last week.

Moreover, the IEA released a day before reflected a bullish outlook for oil, noting that global oil markets are heading towards a long-awaited balance as crude supplies will shrink "dramatically" later this year.

Oil traders now turn cautious and remain on the back foot ahead of the US rigs count data, OPEC monthly report and a fresh batch of crucial US macro data, all of which will be released in the day ahead.