Brent oil rejected at 4-hour 100-MA on gasoline build

Brent oil was offered around 4-hour 100-MA in the overnight trade after the US API reported larger than expected build in gasoline and distillates.

Prices fell from a high of $55.63 to $55.13 levels and were last seen trading around $55.30 levels.

The American Petroleum Institute (API) reported 4.85-million-barrel build in gasoline inventories, and a 1.95-million-barrel build to distillates. The data also showed oil stocks rose by 2.9 million barrels last week, which was slightly higher than the expected figure of 2.8 million barrels.

The rising US oil inventory threatens to derail the OPEC and non-OPEC output cut deal. The focus today is on the US government oil inventory report release.

Brent Oil Technical Levels

A break above $55.59 (4-hour 200-MA) would open doors for $56 (zero figure), above which the prices could test resistance at $56.92 (resistance on 4-hour chart). On the other hand, a breakdown of support at $55.00 (Jan 23 low) could yield a test of $53.80 (Jan 18 low), under which a major support is seen at $53.38 (50-DMA).