Oil Prices Pare Early Gains, Close Lower On Oversupply Concerns
NEW YORK, Oct 13 (Reuters) - Oil prices gave up early gains and closed lower on Tuesday after the International Energy Agency rekindled fears that the market remains over supplied.
"There's still a lot of crude oil available on the market, and I am with IEA that there is more than adequate supply for the balance of this year and the rest of 2016," said Andrew Lipow, president of Lipow Oil Associates.
Brent futures for November delivery settled at $49.24 per barrel, down 1.24 percent, or 62 cents. Brent futures were above $50 in earlier trading.
U.S. crude settled at $46.66 per barrel, down 0.93 percent, or 44 cents, wiping out early gains of over a dollar on technical trades.
The IEA said the world oil market would remain over supplied for at least another year despite falls in output from non-OPEC producers.
Traders noted that a weaker U.S. dollar, which hit a three-week low on Tuesday, had added some support to higher crude prices early in the day.
"There is some uncertainty in the trading markets about the direction of the U.S. dollar, with some trading action in oil reflecting hopes that the U.S. dollar declines further," said Richard Hastings, macro strategist at Seaport Global Securities.
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