Oil extends five-day winning streak in Asia

Oil prices are on the rise for the sixth straight day as the drop in the US output provided much needed momentum for the technical correction set in motion by the oversold technical conditions. 

At the time of writing, Brent front month contract was up 25 cents or 0.53% at $47.80/barrel. WTI was up 21 cents or 0.47% at $44.95/barrel. 

The technical correction gathered pace on Wednesday after the US Energy Information Administration (EIA) data showed the gasoline inventories fell 894K last week. The US oil production fell 100K barrels to 9.3 million barrels per day. This was the biggest decline since July 2016. 

The drop in the US gasoline inventories and weekly oil production overshadowed the inventory data which showed a buildup of 2.6 million barrels. 

The three-day decline in the USD index from 97.16 to 95.51 is also keeping the oil benchmarks well bid this Thursday morning in Asia.