WTI Oil - Two-day sell-off stalls in Asia

The two-day sell-off in WTI oil stalled in Asia, although bears remain in the hunt as markets question OPEC cuts.

API reports rise in inventory

The American Petroleum Institute (API) data released overnight showed a 1.5 million barrel inventory buildup; the first increase in crude inventory in eight weeks.

The bearish data accentuated the concerns that shale producers are likely to exploit higher prices by producing more; something that could force the OPEC to ditch the output cut deal. Moreover, the reports of OPEC non-compliance are already doing the rounds.

WTI Technical Levels

Prices were last seen trading around $50.95/barrel. A break above $51.63 (Dec 9 high) would open the doors to $52.15 (23.6% of Nov low - Jan high). On the other hand, a breakdown of support at $50.69 (session low) would expose $50.25 (38.2% of Nov low - Jan high).