Oil prices dipped slightly in Asia on Wednesday with the market shrugging off a much larger than expected build in U.S. inventories reported by an industry group.
Crude oil inventories jumped 9.94 million barrels the end of last week, more than expected, according to estimates from the American Petroleum Institute (API) on Tuesday. Gasoline stocks rose 720,000 barrels and distillate stocks increased by 1.5 million barrels.
Supplies at the Cushing oil hub fell by 1.3 million barrels.
Official data from the U.S. Energy Information Administration (EIA) is due on Wednesday. A poll of analyst sees crude oil inventories up 3.175 million barrels, while distillates and gasoline supplies are each seen down by 1.15 million barrels.
Overnight, crude settled higher in the U.S. on Tuesday ahead of the API estimates.
Resistance on crude oil is seen near the February highs at 54.22. Momentum is neutral as the MACD (moving average convergence divergence) index is printing near the zero-index level with a flat trajectory which reflects consolidation. The RSI (relative strength index) is printing a reading of 50, which is in the middle of the neutral range and reflects consolidation.