Oil ticks higher as stockpiles set to fall

Oil benchmarks on both sides of Atlantic extends its three-day winning streak this Wednesday on  renewed hopes of Bremain, while expectations of a fall in US crude reserves also lifts the sentiment around the black gold.

Both crude benchmarks above $ 50 mark

Currently, both crude benchmarks are up about +0.50%, with Brent defending 50 barrier, while WTI nears $ 51 mark. Oil prices swung back into gains, after brief losses seen in early Asia, as markets cheered a huge stockpile fall, as reflected by the API report released late-Tuesday.

The API report showed crude inventories in the US slipped by 5.2 million barrels over the week to June 17, more than the 1.5 million barrels fall expected.

Moreover, expectations of strengthening global demand along with declining US oil output, also adds to the upbeat momentum.

Analysts at Societe Generale noted, "Global demand growth is quite robust, driven by the US, China, India and other emerging markets. On the supply side, declining US crude production is expected to underpin a trend of lower non-OPEC production."

Meanwhile, attention now shifts towards the official US EIA inventory report due later today, with markets predicting a drop of nearly 1.4 million barrels. Also, looming Brexit vote will be closely eyed for further cues on the overall market sentiment.