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Oil inches higher amid thin markets Dhwani Mehta

Oil benchmarks on both sides of Atlantic traded in a flat-line almost throughout the Asian session, and now break to the upside amid thin volumes as the US markets remain closed today on account of Independence Day.Brent holds above $ 50 markCurrently, both crude benchmarks trade modestly higher, with Brent at $50.49, while WTI trades ahead of $ 49.11 levels. The black gold extends its consolidative mode into Europe, following heavy gains booked last Friday after the bulls cheered robust ISM manufacturing PMI data from the US, as dust settled over the Brexit aftermath.However, over the last hour, oil prices appear to catch a fresh bid tone and inch slightly higher, as the US dollar takes a back seat across the board after the recent strength. A weaker greenback makes the dollar priced-in commodity cheaper for holders in other currencies.The ongoing political tensions in Nigeria also continue to underpin the oil prices. Nigerian crude production has slumped to 30-year lows, due to attacks by militant group the Niger Delta Avengers.Meanwhile, markets now await the weekly supply reports from the API and EIA for fresh incentives on oil, while Wednesday’s FOMC minutes may also have significant impact on the black gold.



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