Oil prices
rose for a fourth consecutive session on Tuesday as investors covered short
positions, although worries over a persistent global supply glut still
lingered.
Brent crude
futures LCOc1, the international benchmark for oil prices, gained 35 cents, or
0.7 percent, to $46.18 per barrel by 0715 GMT.
U.S. West
Texas Intermediate (WTI) crude futures CLc1 were up 30 cents, or 0.7 percent,
at $43.68 per barrel.
The gains
mean the market is up slightly so far this week, after spending much of the
last month in negative territory.
"Oil
may be close to the bottom but badly damaged sentiment and a rising (U.S.) rig
count will dent the recovery," U.S. bank Citi said on Tuesday.
The
Organization of the Petroleum Exporting Countries (OPEC) and its partners have
been trying to reduce a global crude glut with production cuts. OPEC nations
and 11 other exporters agreed in May to extend cuts of 1.8 million barrels per
day (bpd) until March 2018.
Despite the
cuts, which started in January, markets remain well supplied due to rising
output elsewhere.
OPEC members
Nigeria and Libya are exempt from the cuts and have raised production. OPEC
member Iran was also allowed a small increase to recover market share lost
under Western sanctions over its nuclear programme.
U.S. shale
oil output has risen about 10 percent since last year to 9.4 million bpd
C-OUT-T-EIA, with the number of U.S. oil rigs in operation at the highest in
more than three years. [RIG/U]
"Traders
are also looking ahead to the EIA Energy Conference in Washington, where U.S.
shale oil producers are expected to give their view of current market
conditions," ANZ bank said.
Analysts at
Bank of America-Merrill Lynch said demand was not growing quickly enough to
absorb output, especially since imports in Asia are stuttering.
A fuel glut
in China, a hangover from demonetisation in India, and an ageing, declining
population in Japan are holding back crude oil demand growth in three of the
world's top four oil buyers.
Reuters*
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