Oil stabilizes in Asia, but recovery remains fragile

By FXStreet FXStreet (Mumbai) – Oil benchmarks on both sides of Atlantic halted its downward spiral and appear to embark upon a tepid recovery from their lowest levels since 2003.

WTI rebounds from below $ 27, regains $ 28 and beyond
Currently, WTI trades 1% higher at 28.62, while the Brent oil rises nearly 1.40% to 28.20. Oil bears took a breather this Thursday, with the prices seeing more of a relief-rally after the recent rout.

However, any recovery in oil remains short-lived and fragile as the overall sentiment still remains bearish, given the omnipresent glut worries and mounting global economic concerns, particularly in China.

Adding to the negative sentiment around the black gold, the American Petroleum Institute (API) report on Wednesday showed US crude reserves rose more than expected last week. Crude inventories rose by 4.6 million barrels in the week to Jan. 15 to 485.2 million, well above expectations for an increase of 2.8 million barrels.

Focus now remains on the official EIA inventory report due later today for fresh cues on the oil prices. Analysts at ANZ bank noted, “We believe prices are likely to come under more pressure after the release of EIA inventory data.”
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Source:: FX Street