Oil trades directionless amid holiday-thinned markets

Oil prices on both the sides of the Atlantic continue to trade mixed, with the Brent in the red on resurfacing supply glut worries, while WTI defends mild gains amid broad based US dollar retreat.

Oil awaits clarity on output freeze talks

Currently, both crude benchmarks lack-lustre, with Brent down -0.21% at $ 46.73, while WTI edges +0.25% higher at $ 44.26. Oil prices trade directionless in a tight range awaiting some clarity on the oil output freeze-related talks from major oil producers, against the backdrop of omnipresent oversupply worries.

The prices are expected to remain under pressure amid latest reports that ran is ready to raise its oil production to 4 million barrels per day (bpd) in the next two to three months depending on market demand, a senior official from the National Iranian Oil Company (NIOC) said on Monday.

Focus now remains on the weekly supply reports due to be published by API and EIA on Wednesday and Thursday, while limited volatility is expected today as the US and Canadian markets remain closed on account of Labour Day holiday.