Oil prices flat amidst oversupply concerns, weak dollar
* IEA says global supply to outstrip demand this year
* IEA raises demand growth forecast to 1.4 mln bpd in 2018
* U.S. crude inventories forecast to build for 3rd week
* Coming up: API's weekly U.S. oil data at 2030 GMT
(Adds settlement prices, latest U.S. oil inventory forecast)
By Ayenat Mersie
NEW YORK, Feb 13 (Reuters) - Oil prices ended largely
unchanged on Tuesday as a weaker dollar spurred a rebound from
an early slide after the International Energy Agency forecast
supply could outstrip demand.
Brent futures hit a two-month low early, but the
benchmark settled at $62.72 a barrel, with a 13-cent or 0.2
percent gain. U.S. West Texas Intermediate crude futures
closed 10 cents, or 0.2 percent, lower at $59.19 a barrel.
"We have chipped away at crude losses today, and you could
easily say it’s a function of a weak dollar," said Bob Yawger,
director of energy futures at Mizuho.
The dollar's slide to a one-week low encouraged the
buying of greenback-denominated crude as it makes crude cheaper
for buyers using other currencies.
Since the stock market began falling sharply early this
month, oil prices have wiped away the year's gains amid a
volatile stock market.
"There are a lot of people who are praying that last week’s
collapse in crude...was some anomaly, and that as soon as the
stock market recovered, the crude market would recover with it,"
said Walter Zimmerman, chief technical analyst at United-ICAP.
"So far its looking a little ominous but WTI has not broken
down," Zimmerman said, adding the contract would have to decline
more to enter a bear market.
The Paris-based International Energy Agency said global oil
supply would outstrip demand this year, prompting fears that
efforts to reduce inventories would fall short of
"We've been under pressure...it's all been a function of the
IEA report," said Yawger.
The IEA revised its global demand forecast upward by 7.7
percent. Still, rising production, particularly from the United
States may outweigh demand gains. The United States overtook
Saudi Arabia last week to become the second-largest global
U.S. oil production is expected to surpass 11 million
barrels per day in late 2018, a year earlier than projected last
month, the U.S. Energy Information Administration said last
Seasonality may also be affecting prices, analysts said.
"A driving force behind the next few weeks of pricing
vulnerability stems from the current peak in U.S. refinery
maintenance season," Michael Tran, commodity strategist at RBC
Capital Markets, wrote in a research note.
The market was awaiting clearer direction from weekly U.S.
energy data, which was forecast to show a third weekly build in
crude inventories. Industry body the American Petroleum
Institute was due to publish its data at 4:30 p.m. (2030 GMT)
with official government figures due on Wednesday morning.
(Additional reporting by Amanda Cooper in London and Henning
Gloystein in Singapore; Editing by David Gregorio and Marguerita
First Published: 2018-02-13 03:05:32
Updated 2018-02-13 22:47:22
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