Oil drops 1% in Asia on Goldman Sachs’ bearish outlook

Oil benchmarks on both sides of Atlantic took a breather from post-Brexit rally an d dropped sharply this Thursday, mainly hit by Goldman’s Sachs bearish outlook on the black gold.

WTI fails once again near $ 50 mark

Currently, both crude benchmarks edge down over -1%, with Brent at $50.75, while WTI trades near $ 49.40 levels. The black gold came under fresh selling pressure after the sentiment was hurt on bearish forecasts made by Goldman Sachs, citing that risks remain to the downside for oil.

Moreover, a stronger US dollar across the board combined with fading concerns over Norwegian strike outages also collaborated to the downside in the oil prices. The US dollar index, which measures the relative strength of the greenback against a basket of six major currencies, jumps 0.27% to fresh daily highs of 95.96 levels.

While markets appear to have ignored the EIA inventory report released yesterday, which showed that the US crude stockpiles fell 4.1 million barrels in the week to June 24, the sixth consecutive week of drawdowns, to 526.6 million barrels.