Oil has recovered from a post-settlement dip,...>

OIL: Oil has recovered from a post-settlement dip, and trades marginally higher

on the day, with risk sentiment recovering to a degree in Asia-Pacific trade,

supported by a combination of a 6-month high for the Chinese Caixin services

PMI, MOFCOM confirming that China & the U.S. will hold vice-min level talks re:

trade on Jan 7-8 & news that the Japanese MoF, BoJ & FSA are set to convene re:

financial markets (in lieu of the FX flash crash) supported risk. WTI +$0.16,

Brent +$0.11.

- Also worth noting that reports pointed to a 4.5mn bbl headline crude drawdown

in the latest API crude inventory estimate, while the reports noted that

distillate and gasoline stocks rose (which weighed on crude) in the estimate,

with Cushing stocks also ticking higher.

- This comes after a volatile Thursday for crude, as a negative session for Wall

St. initially weighed in NY trade, although RTRS latest OPEC survey pointed to

lower crude production from the cartel in Dec, which added some support.

- DoE inventory data will hit later today, as will the latest U.S. Baker Hughes

rig count.