Oil prices slipped near $58 on Thursday but remained in the middle of a month-long trading range after U.S. oil data showed a modest rise in crude inventories but sharp falls in fuel stocks.
U.S. crude
Data on Wednesday showed U.S. stocks of gasoline and diesel fuel fell more sharply than expected last week, helping prices recoup losses after separate government reports showed a slowing U.S. economy.
"With the chop that is usually generated by the EIA numbers now out of the way, we think the markets will resume their drift lower as the lack of upside props continue to weigh on prices," said Man Financial.
U.S. distillate stocks fell by 2.7 million barrels and gasoline inventories dropped by 2.8 million barrels. Heating oil stocks fell by 1.5 million barrels amid chilly weather in the U.S. Northeast, but are still up five percent from a year ago.
Crude oil stockpiles rose by 2 million barrels, short of the forecast rebound from thefrom the previous week's sharp decline as refineries boosted production faster than expected.
Whether oil prices break out of the $56.55-$61.79 trading band they have maintained since early October may now depend on OPEC's determination to carry out its first output curbs since 2004 and the intensity of the northern winter.
Saudi Arabia and the United Arab Emirates have told their customers to expect less crude this month, but most other producers have yet to commit.
OPEC has cut less than half of the 1.2 million bpd cut it agreed to last month, analysts said.
Venezuela, one of the biggest price hawks in the cartel, said on Wednesday the curbs were meant to stop prices falling below $60 a barrel.
"OPEC has a strategy to maintain (prices) at levels of at least $60 per barrel and we are going to work to maintain those prices," Oil Minister Rafael Ramirez said.
He said another 300,000 bpd cut may be needed to do so.
Iran's Oil Minister was quoted as saying on Monday a price below $60 was unacceptable because of production costs, but most other OPEC officials -- including Saudi Oil Minister Ali al-Naimi -- have avoided signaling any price target
