Oil market pattern this week – correction in Asia & losses in Europe and US

Oil market has developed a patter this week which has prices undergo a modest technical correction in Asia followed by fresh offers in Europe and US.

The moderate uptick in the prices seen in both the benchmarks today is in line with the similar action seen in the Asian session on Tuesday and Monday. It remains to be seen if the prices are hammered once again in Europe and US as seen yesterday and on Monday.

The pattern could be repeated in Europe and US given the oil market rebalancing is seen drowning in gasoline glut.

At the time of writing, US oil was trading 28 cents or 0.71% higher on the day around $39.80/barrel. Brent oil was up 22 cents or 0.53% at $42.00/barrel. Prices may have found support from the slightly bullish American Petroleum Institute (API) data released overnight. However, the pattern could be put to rest only if the US government data is surprisingly bullish.