FXStreet (Mumbai) - Oil benchmarks on both sides of Atlantic halted its sharp rebound from twelve-year troughs and turned lower as markets believe that the rally was unsustainable given persisting supply overhang. EIA report weighs Currently, WTI trades muted at 29.60, while the Brent oil drops nearly 1% to 29.33. Oil bears fought back and dragged the prices back in the red as markets mull over the fresh build up in crude reserves amid an already oversupplied market, with the Iranian oil likely to exacerbate the pain in the black gold. On Wednesday, oil prices staged a solid recovery from multi-year lows and posted the biggest daily gain in three-months largely on the back of a short squeeze after the recent extensive declines. Both crude benchmarks took on the recovery beyond $ 30 mark for the first time in two days and completely ignored the bearish EIA inventory report. The US crude inventories rose 4 million barrels in the last week, compared with expectations for an increase of 2.8 million barrels, according to the EIA. EIA noted, "At 486.5 million barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years." More so, the previous rally could be also partly attributed to the colder weather in the US and Europe, with traders using that as an excuse to book profits on their shorts. Looking ahead, markets continue to assess the EIA weekly report and now await the US rig count data due later today for further momentum on the oil prices. For more information, read our latest forex news.