SINGAPORE (Reuters) - Oil futures continued to firm on Tuesday adding
to gains of more than 11 percent in the prior two sessions, but
persistent worries over China's demand outlook capped prices.
Some investors are betting a bottom has formed to the seven-month long rout on the market, with signs that a fall-off in drilling activity into U.S. shale deposits has raised concerns about future production.
OPEC delegates, though, said prices may stay depressed until summer due to weak seasonal demand even as Saudi Arabia's strategy of curbing the output growth of rival producers shows results.
Brent crude oil futures were 34 cents higher at $55.09 a barrel by 0508 GMT. U.S. WTI futures were at $49.88 a barrel, up 31 cents.
Prices jumped in the past two days after data showed the number of U.S. oil drilling rigs had fallen the most in a week in nearly 30 years. Month-end covering by traders taking profits on earlier short positions added to the rally.
"The seeds of an oil price recovery are being sown," Bernstein analysts said in a note, warning of further downside risk to oil supply in places such as the Gulf of Mexico, the North Sea and Brazil as companies cut costs in response to the up to 60 percent fall in oil prices since mid-June.
Read more Click here / www.trade4x.net
Some investors are betting a bottom has formed to the seven-month long rout on the market, with signs that a fall-off in drilling activity into U.S. shale deposits has raised concerns about future production.
OPEC delegates, though, said prices may stay depressed until summer due to weak seasonal demand even as Saudi Arabia's strategy of curbing the output growth of rival producers shows results.
Brent crude oil futures were 34 cents higher at $55.09 a barrel by 0508 GMT. U.S. WTI futures were at $49.88 a barrel, up 31 cents.
Prices jumped in the past two days after data showed the number of U.S. oil drilling rigs had fallen the most in a week in nearly 30 years. Month-end covering by traders taking profits on earlier short positions added to the rally.
"The seeds of an oil price recovery are being sown," Bernstein analysts said in a note, warning of further downside risk to oil supply in places such as the Gulf of Mexico, the North Sea and Brazil as companies cut costs in response to the up to 60 percent fall in oil prices since mid-June.
Read more Click here / www.trade4x.net
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