OANDA - Oil Futures Commentary

Please attribute the following commentary to Jeffrey Halley, senior market analyst at OANDA. For direct comment, call Jeffrey at +65 9457 1849 or email jhalley@oanda.com.

Overnight, oil recovered half of the previous day's sell-off, with both Brent and WTI rising over 2%.

Generally, a weaker dollar helped crude's cause, as did the American Petroleum Institute's (API) surprising 7.4 million barrel drawdown in inventory late in the session.

We expect Asia to trade on the positive side today, supported by the API number and positive compliance by OPEC/NOPEC to their agreed production cuts.