BEIJING (Reuters) - Brent crude held steady above $56 a barrel on Wednesday, and U.S. crude
rose briefly more than $1, after a smaller than expected rise in U.S.
crude stocks were viewed by some as a sign that a supply glut was
starting to abate.
The gains in futures, however, were capped by a warning from the International Energy Agency (IEA) that ample global production would still swell world inventories before investment cuts begin to significantly dent output.
"The supply growth in 2015 is likely to continue unabated, albeit at a somewhat lower rate," Fereidun Fesharaki at Facts Global Energy said in a note on Wednesday.
"This all means a weak market in 2015 and even lower oil prices. Demand rebound will not save the oil market," he said.
Brent March crude futures had ticked down 13 cent to $56.30 by 0334 GMT, after losing $1.91 during the previous session on the IEA expectations.
U.S. March crude futures were trading up 30 cents at$50.32, after falling $2.84 in the previous session.
Oil prices are expected to test support levels, with Brent crude showing a good chance of breaking below $56.21, while U.S. crude could potentially break below $49.88, according to Wang Tao, a Reuters market analyst.
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The gains in futures, however, were capped by a warning from the International Energy Agency (IEA) that ample global production would still swell world inventories before investment cuts begin to significantly dent output.
"The supply growth in 2015 is likely to continue unabated, albeit at a somewhat lower rate," Fereidun Fesharaki at Facts Global Energy said in a note on Wednesday.
"This all means a weak market in 2015 and even lower oil prices. Demand rebound will not save the oil market," he said.
Brent March crude futures had ticked down 13 cent to $56.30 by 0334 GMT, after losing $1.91 during the previous session on the IEA expectations.
U.S. March crude futures were trading up 30 cents at$50.32, after falling $2.84 in the previous session.
Oil prices are expected to test support levels, with Brent crude showing a good chance of breaking below $56.21, while U.S. crude could potentially break below $49.88, according to Wang Tao, a Reuters market analyst.
Read more Click here / www.trade4x.net
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