Oil pushed back above $49 a barrel today as funds bought back in following recent heavy price falls but an anticipated build in US crude stocks capped gains.
US crude rose 18 cents to $49.15 a barrel, extending a 36 cent rise yesterday and up from a three-month low of $47.60 a barrel hit on Monday.
London's Brent crude was up 42 cents at $49.76 a barrel. Prices are down around $9 from record highs hit in early April, following a bout of sustained selling from hedge funds.
The modest rebound came as traders hedged themselves against the possibility that a US government report later today would show a surprise drop in crude inventories, which have risen 12 out of the last 13 weeks.
"If stocks were to fall, prices could shift above $50 a barrel," said David Thurtell, commodity strategist with Commonwealth Bank of Australia. "People do not want to be in a short position."
While US petrol stocks were also forecast to gain 800,000 barrels, prices rose in anticipation of higher demand during the US summer driving season.