Oil prices rallied net loss on Thursday but dealers said the bearish resume as soon as inventory records and concerns on slowing economic growth dampened sentiment.
Crude oilBrent rose 50 cents to $ 46.76 a barrel by 0745 GMT (3:45 EDT). US crude rose 60 cents to $ 45.35.
"The oil market is in surplus, OPEC production is rising and we had a weekly report rather bearish US oil stats," said Tamas Varga at brokerage PVM Oil Associates London, .
crude oil inventories in the US fell less than expected last week, while distillate stocks rose the most since January and stocks gasoline rose unexpectedly, the Energy information administration (EIA) said on Wednesday.
A bearish assessment of the oil market by the International Energy Agency (IEA) on Wednesday also helped send both crude oil benchmarks down more than 4 percent the close of trading.
IEA said a glut on the world oil market was persistent and put a price of crude on the lid despite the growth in demand and the decline in non-OPEC production.
"We know that the rebalancing process is now, but there is still an overhang in the oil and it will take time," said Avtar Sandu, senior director of products at Phillip Futures.
soaring crude inventories pushed floating storage to heights of seven years, the IEA said.
Wednesday's US data depicts a traditionally busy summer season driving plagued by exceptionally weak demand, as many had expected the travel driving record amid oil prices.
The EIA said crude inventories fell 2.5 million barrels last week, less than a drop of 3 million barrels forecast in a Reuters poll.
technical analysts say crude oil markets may be ready for a larger move lower after three months of strength.
"The market moved up to $ 50 pretty quick so we could go down and see if there is something below $ 40," Sandu at Phillip Futures said.
Varga at PVM said Brent first target could be its moving average 100 days at $ 44.84 per barrel, a level that could be reached in the next week.
Reuters
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