Oil nudges higher, but ample global production weighs

January 29, 2019

SYDNEY (Reuters) – Oil prices steadied on Tuesday, edging up from a near two-week low in the previous session when prices fell around 3 percent on fears of supply growth and a global economic slowdown.

U.S. West Texas Intermediate (WTI) crude futures were at $52.07 per barrel, up 8 cents from their last settlement. WTI futures closed down 3.2 percent on Monday when prices touched $51.33 a barrel – the lowest since Jan. 17.

International Brent crude oil futures had yet to trade, after closing down 2.8 percent in the previous session when prices hit a low of $59.49 a barrel – the lowest since Jan. 15.

“Rising supplies continue to put downward pressure on crude prices despite the efforts of the Organization of the Petroleum Exporting Countries (OPEC) and other major producers to limit production,” said Alfonso Esparza, senior market analyst, OANDA.

U.S. drillers added 10 oil rigs last week, according to energy services firm Baker Hughes on Friday, in another sign of the expanding record U.S. crude production that has soured market sentiment.

(Reporting by Colin Packham; editing by Richard Pullin)