Oil traded lower overnight as risk assets.......>

OIL: Oil traded lower overnight as risk assets took a hit hit. WTI lost $0.25 to

trade at $71.95, while Brent lost $0.50 to trade at $79.05.

- Reports suggest that the latest API crude inventory data pointed to a draw in

headline crude stocks, while the body estimated that Cushing & distillate stocks

also fell, while API estimated an uptick in Gasoline stocks. Traders now await

today's DoE release.

- Tuesday saw some source reports doing the rounds. One source noted that Russia

wouldn't rule out extending the OPEC+ production deal into 2019, while another

suggested that OPEC may decide to raise oil output in June owing to concerns

surrounding Venezuelan & Iranian supply.

- Pressure remains on WTI's daily bull channel top ($72.99) with bulls currently

focused on the $73.25-74.58 region where the weekly bull channel top is located.

Overbought studies and daily momentum divergence are the key concerns for bulls.

In saying that, bears now need a close below the May 22 low ($71.82) to gain

breathing room.