NEW YORK: The rebound in oil prices lost some momentum on Tuesday as U.S. crude traded lower for the first time in four sessions after the International Energy Agency (IEA) warned of more selloffs in the near term as stocks continue to rise.
Oil stockpiles in member countries of the Organization for Economic Cooperation and Development, which groups the world’s richest nations, may come approach a record high 2.83 billion barrels by mid-2015, said the IEA, which advises the West on energy policy.
Ian Taylor, chief executive of Swiss-based, Dutch-owned energy and commodity trader Vitol, added to the bearish sentiment, telling the International Petroleum Week industry conference in London that he expects a “dramatic” build in oil stocks over the next few months.
Analysts polled by Reuters, meanwhile, estimated U.S. commercial crude stockpiles likely rose 3.8 million barrels to reach a record high last week.
U.S. crude was down 50 cents, or 1 percent, at US$52.36 a barrel at 9:25 a.m. EST (1425 GMT), after hitting a session low at US$51.86. It had gained nearly 10 percent over the past three sessions, and almost 19 percent in a broader rebound between Jan. 29 and Feb. 9.
Benchmark Brent crude was flat, trading 7 cents up at US$58.41, recovering from a low of US$57.41 earlier in the day.
(Additional reporting by Adam Rose in Beijing; Editing by Dale Hudson, Louise Heavens and Peter Galloway)