Oil eases-off multi-month highs, API data eyed

Oil prices on both sides of the Atlantic stalled the ongoing bullish momentum and edged lower on Tuesday, as the bulls took a breather heading towards the US economic releases and API crude supply report.

WTI capped below $ 46 barrier

Currently, both crude benchmarks retreat, with Brent down -0.62% at $ 48.05, while WTI drops -0.48% to 45.50 levels. Oil prices paused its three-day rally and drifted lower as we progress towards the European open, with markets looking to book profits on the oil longs ahead of a data-busy US trading calendar this Tuesday.

Moreover, the black gold finds support from broad based US dollar weakness, as markets remain on the back foot amid uncertainty surrounding Fed rate hike prospects this year. A weaker US dollar makes crude less expensive for the holders in foreign currencies.

Meanwhile, oil prices hover near multi-week highs on increasing speculations that the OPEC might call for output freeze at its meeting next month, in an attempt to stem the price declines.

Later on Tuesday, fresh stockpile report by the American Petroleum Institute (API) will be released, with markets keeping a close eye amid growing crude reserves in the US.