FXStreet (Mumbai) - Oil benchmarks on both sides of Atlantic resumed its bear trend after two back-to back sessions of short-covering as concerns over global supply glut raised its ugly head back in the markets. Oil: Short-covering, Cold-spell relief rally ends Currently, WTI drops 3.87% to 30.95, while the Brent oil sinks +4.05% to 31.52, reversing a part of the recent extensive rally. Oil prices failed to sustain at higher levels once again and highlight the dominant ‘sell on rallies’ strategy followed my markets as oversupply worries continue to plague the oil markets. Reports of Iraq's oil production hitting a record in December, on increased output from its central and southern fields combined with Saudi’s Aramco noting that the company is not reducing its new investment in oil and gas production capacity, added to the supply overhang concerns and dragged the prices back in the red. Oil prices rallied nearly 10% on Friday, one of the biggest daily rallies ever and the first weekly gain in 2016 so far, mainly on the back of a short squeeze. While the cold spell in the US and Europe also boosted the demand for heating oil and thus, underpinned the recent oil rally. For more information, read our latest forex news.