Oil Ticks Lower in Asia, WTI Off 2016 Highs
Oil benchmarks on both sides of Atlantic are seen consolidating the upside after yesterday’s massive rally, which was backed by a drawdown in the gasoline inventories.
Oil traders mull over China CPI figures
Currently both crude benchmarks are seen trading largely subdued in the mid-Asian session, with WTI down -0.16% to $ 38.23 while the Brent oil drops -0.49% near $ 40.85. Oil prices retreat from multi-month tops and tread water this session as traders assess the impact of better than expect Chinese CPI figures on the world’s second largest oil consumer.
The Chinese CPI rose 2.3% y/y in February, rising at the fastest pace since July 2014 and much higher than 1.8% increase expected.
Oil prices spiked to three-month highs in the US last session after the official EIA inventory report showed a major a big gasoline inventory withdrawal, which completely outweighed the rise in the crude reserves.
According to the EIA report, crude stockpiles rose 3.880 million barrels in the week ended March 4, following the 10.374 million barrel jump seen previously and against an increase of 3.178 million barrels estimated.
Meanwhile, attention now shifts towards the OPEC's and non-OPEC's key producers meeting scheduled on March 20, to discuss output freezes and other measures to stabilize oil markets.
(Market News Provided by FXstreet)
