Oil prices edged higher overnight with WTI......>

OIL: Oil prices edged higher overnight with WTI last $0.25 better off at $65.75,

while Brent futures added a little over $0.10 to trade at $70.25.

- This came after Monday's sell off on fears of a build in crude inventories in

this week's DoE data.

- Reports also suggest that the latest Genscape Cushing inventory data pointed

to a relatively large weekly build in inventory at the US hub.

- Heightened geopolitical risk in the Middle East has done little to disrupt

supply thus far, while Russian Energy Minister Novak addressed reporters on

Monday, noting that it was too early to consider exiting the global oil output

deal and that any withdrawal from the agreement should be done gradually.

- The rejection ahead of 2018 highs Monday is less than ideal for bulls when

combined with daily studies at O/B levels and looking to correct as well as the

Bollinger top ($66.06) limiting follow through. Bears now look for a close below

$63.99 to shift initial focus back to $61.45-62.65 where 21 ($62.53) & 55

($62.65) DMAs are situated. Bulls continue to look for a close above $66.66 to

target $69.54-73.25 last seen in early 2014.