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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.