Rally On Pause

Crude futures are lower in Asia-Pac trade on Wednesday, adding to Tuesday's losses as the greenback holds most of its gains while a broad risk off tone has weighed on the commodity complex. Data from API yesterday was bearish for oil, with gains in headline crude stocks to the tune of 4.127m bbls and builds in downstream products. If official DoE inventory figures confirm the build it will be the first lift in stockpiles for eight weeks. The modest correction lower in both WTI and Brent prices has done little to deter the near-term uptrend in oil prices, however, with the technical picture still very much bullish. The White House further voiced their view on energy markets, stating that they continue to speak with OPEC on pricing matters, and is looking at every means they have to address the cost of oil.