Oil attempting technical recovery in Asia amid glut fears

US oil is attempting a technical recovery after last week’s sell-off although gains remain muted on fears the oil market rebalancing is drowning in gasoline glut.

US rig count up for fifth straight week

Baker Hughes data released on Friday showed rigs exploring for oil and natural gas in the US increased for fifth week to 463. Though the rig count is substantially lower than the number seen a year ago (874), the count has been on the rise since last few weeks.

Weekly inventory numbers in the US have repeatedly shown rise in gasoline inventories, triggering fears of gasoline glut derailing oil rebalancing. Consequently, prices fell sharply from near $47 levels to $40.57 in last two weeks.

The oversold nature of prices on technical charts is aiding the recovery; however, glut concerns are capping gains. Mixed China data released in the Asian session has not had any impact on oil prices.

WTI Crude was last seen trading 18 cents or 0.43% higher around $41.78/barrel. Brent oil was seen trading  17 cents or 0.37% higher around $43.69/barrel.