Oil is lower for the second day so far in.......>

OIL: Oil is lower for the second day so far in Asia-Pac on Tuesday, WTI last

down $0.45 at $65.11, Brent is down $0.33 at $69.13. The spread between WTI and

Brent has narrowed to $4.03 from $6.43 at the start of 2018. 

- Oil is weighed by a stronger USD which has risen from 3-Year lows. There are

also concerns that higher prices will tempt higher breakeven producers, such as

shale companies, back to the market. The US is already the second highest global

producer at around 9.637mln BPD.

- There were also reports of large scale investment plans from Exxon Mobil.

- MNI technical analysis sees WTI support at $64.87 - Hourly support Jan 24,

resistance is seen at $65.68 - Hourly resistance Jan 29. Support emerging on

dips last week provided bulls comfort although the lack of follow through on

fresh 2018 and 3+yr highs is a concern when combined with daily studies looking

to correct from O/B. The $64.87 support remains key this week. Bears need a

close below to ease bullish pressure and then below $62.78 to confirm a break of

the 21-DMA and initially focus on $58.82-60.75 where the 55-DMA ($59.66) is

found.