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