Oil is broadly flat in Asia-Pac trade, WTI is...>

OIL: Oil is broadly flat in Asia-Pac trade, WTI is up $0.16 at $56.76, Brent is

faring slightly better up $0.38 at $62.82. Oil fell sharply yesterday, equating

to a 2.5% drop in WTI over the past 2 session. The drop came as US production

rose again for an 8th successive week to hit the highest levels in more than 30

years. DoE inventories on Wednesday showed headline crude stocks fell 5.117mln

bbls against an expected drop of 3.308mln bbls. Gasoline though, again saw a

large build at 5.664mln bbls against an expected build of 1.135mln bbls.

- MNI technical analysis sees WTI support at $56.53 - Low Dec 13, Bull channel

base (Oct mthly low), resistance is seen at $56.90 - Hourly resistance Dec 13.

The aggressive rejection ahead of the $58.99 Nov high was less than ideal for

bulls and sees pressure on the daily bull channel base off Oct lows. Bears look

for a close below $56.53 to confirm a break and to shift focus to $54.90-55.15

where the 55-DMA is situated. Bulls now need a close $57.40 to ease pressure on

the channel base and above $57.98 to reconfirm initial focus on $58.60-58.99.