Oil holds on to moderate gains ahead of supply data

Oil prices advanced in early Asia and continue to hold on to moderate gains ahead of the weekly inventory data release in the US.

At the time of writing, WTI oil was up 12 cents or 0.26% at $47.11/barrel. Brent was trading flat around $49.50/barrel. The moderate strength in oil prices could be explained by retreat in the US dollar index from two-week high.

However, the buying interest fails to strengthen as markets fear the producers’ meeting in September is unlikely to result in a production freeze agreement.

Traders now await weekly US inventory data release – American Petroleum Institute (API) today and DOE inventory figures tomorrow.