Brent oil stalls after three-day winning streak

Brent oil is losing height in Asia after a three-day winning streak saw prices rally from $47 to $51 levels.

Bullish inventory report support prices

Prices rallied yesterday to a high of $51.07 after data from the American Petroleum Institute (API) showed a larger than expected draw on stocks. Oil inventories fell by 5.2 million barrels for the week ended June 17; the API said. The actual data was significantly higher than the expected draw of 1.7 million barrels.

The focus now shifts to the US government inventory report due for release today. Apart from the inventory report, oil traders would also keep an eye on broader market sentiment, which is at the mercy of Brexit related news flow.

Brent Technical Levels

Prices currently stand at around $50.70/barrel. The immediate hurdle is noted at $51.07, which if breached shall open doors for $52.07 (June 10 high) and $52.83 (June 9 high). On the other hand, breakdown of support at $50.48 (May 26 high) would expose support at $50.00 (zero figure) and $49.81 (May 18 high).