Oil extends bargain-hunting rally, jumps 3%

Oil benchmarks on both sides of Atlantic extend staged a solid comeback and now extend the recovery from Brexit induced selling spiral, mainly driven by a short-c0vering rally amid broad based USD weakness.

Oil bounces-off seven-week lows

Currently, both crude benchmarks trade with strong gains, with Brent up +2.70% at $49.06, while WTI jumps +2.83% to $ 47.66 levels. Renewed risk-on rally fuelled by rebounding European stocks coupled with persistent bearish pressure on the greenback across the board bolstered the relief rally seen in the black gold.

The US dollar index, which measures the relative strength of the greenback against a basket of six major currencies, slides -0.62% to fresh daily lows of 95.95 levels.

Moreover, the oil prices also got support from the fundamentals amid news that about 750 Norwegian workers on seven oil and gas fields are on a strike, which may affect the oil output from the region.

All eyes now remain on the weekly crude stockpiles report from the API  and the EU Summit for further momentum on the commodity.