Brent Up Slightly, US Down 2%; Pipeline News Limits Losses

An updated Reuters survey showed U.S. crude inventories down 500,000 barrels last week, extending the previous week's decline of 2.1 million barrels.

Traders and investors will get more oil inventory data from industry group American Petroleum Institute at 4:30 p.m. EDT (2030 GMT). Official stockpile figures are due Wednesday from the U.S. Energy Information Administration.

Oil-rig reductions suggest a decline of more than 250,000 barrels per day in U.S. crude production between the second and fourth quarters, Goldman Sachs said in a report on Monday.

But some analysts were pessimistic that Brent and U.S. crude prices have found a floor.

Oil markets have swung as much as 8 percent in a day in recent weeks on mixed supply-demand readings. U.S. crude, which hit a 6-1/2-year low of $37.75 on Aug. 24 and a near one-month high of $49.33 a week later, is back at around $45.

"The three-day price spike of almost $10 a barrel seen toward the end of August could easily be negated by an equivalent-sized three-day price plunge next month," said Jim Ritterbusch at oil markets advisory Ritterbusch & Associates in North Wabash, Chicago.

(Additional reporting by Amanda Cooper in London and Henning Gloystein in Singapore; Editing by Chris Reese and Cynthia Osterman)


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