OctaFX | OctaFX Forex Broker
Open trading account
Back

WTI: Holds above $58 in Asia after snapping six-day losing streak

  • WTI is lacking a clear directional bias in Aia
  • Surprise US inventory build-up and record output could keep gains, if any, under check. 

West Texas Intermediate (WTI) oil is trading above the $58 handle in Asia. 

The black gold witnessed two-way business on Tuesday and ended the day with marginal gains, snapping the six-day losing streak – the longest since October. 

Surprise US inventory buildup

The American Petroleum Insitute (API) on Tuesday reported an oil inventory estimate of 1.1 million barrels for the week ending January 10, contradicting analyst expectations of a 474,000-barrel draw in inventory.

Record US output

US oil production stayed at a record high of 12.9 million barrels per day during the week ended Jan. 3, The Energy Information Administration reported Tuesday. 

As a result, oil prices, which had recovered to levels above $58.50 from $57.75, fell back to $58.00. 

Both the weekly inventory build-up and record US output could continue to cap gains in the black gold. 

That said, a temporary bounce to the descending 5-day average at $58.59 cannot be ruled out, as Tuesday's Doji candle is reporting seller exhaustion. 

Technical levels

 

US-China phase one trade deal signing ceremony confirmed at 1630 GMT at the White House

Reuters is out with the latest headlines, confirming the timing of the US-China phase one trade deal signing ceremony that is scheduled at 11.30 AM lo
Read more Previous

PBOC injects CNY 300 billion via one-year MLF on Wednesday

People's Bank of China (PBOC) injected CNY 300 billion via one-year Medium Term Lending Facility (MLF) on Wednesday, as hinted by some traders last ho
Read more Next
Start livechat