Oil prices held under $50 a barrel today, ahead of data expected to show a sustained rise in crude stocks in the United States and as OPEC cranked up production.
US light crude edged up 5 cents to $49.55 a barrel, after the previous day's almost 3 per cent loss at $49.50, the lowest closing level since February 18.
Prices have fallen around 15 per cent from a record $58.28 struck on April 4.
London Brent crude shed 2 cents to $50.50 a barrel, after losing more than 1 percent on yesterday.
"What we are seeing is a coinciding of increased OPEC supply over the last couple of months and we are entering a soft patch for demand," said Mark Pervan, Melbourne-based analyst at Daiwa Securities.
"But this is not likely to last and I expect prices to move up again as demand starts to pick up in late May, early June for the summer driving season."
Analysts polled by Reuters forecast commercial crude
Gasoline and heating oil supplies might have each risen by 700,000 barrels on average, as demand softened, the poll showed.
Analysts said news OPEC's output rose in April also led to the market's weakness.
oil inventories in the United States, the world's largest energy consumer, increased by 1.0 million barrels last week due to soaring imports, rising for the 11th time in 12 weeks.