Oil is higher in Asia-Pac trade on Wednesday,...>

OIL: Oil is higher in Asia-Pac trade on Wednesday, WTI last up $0.39 at $57.53,

Brent up $0.62 at $63.96 still benefiting from the closure of the North Sea

Forties pipeline. At these levels oil is still sharply lower than the start of

trade on Tuesday after WTI declined some $1.50/bbl. The drop came after the EIA

forecast a further increases in US output in 2018, MNI sources also noted broad

profit taking with some stops hit on the way down. 

- WTI saw a slight rise after API inventory data showed headline crude stocks

fell 7.38mln bbls against an expected 3.8mln bbls drop. Market now looks ahead

to the DoE weekly crude inventories, median consensus is for a drop in headline

crude stocks of 3.3mln bbls.

- MNI technical analysis sees WTI support at $56.89 - Low Dec 12, resistance is

seen at $57.98 - Hourly resistance Dec 12. The aggressive rejection ahead of the

$58.99 Nov high is less than ideal for bulls. Bears now look for a close below

$56.89 to confirm an easing of bullish pressure and shift initial focus to

$54.85-55.88 where the 55-DMA is situated.