Oil prices gave up earlier gains this evening after weak US economic data re-focused attention on falling global oil demand and forecasts for rising US supplies. US retail sales unexpectedly fell 1.1% in March, as car purchases declined.
In addition, the US Energy Information Administration (EIA) lowered its 2009 world oil demand forecast. US crude fell 15 cents to $49.90 a barrel though Brent crude was still up 22 cents to $52.36.
Oil fell more than 4% on Monday after the International Energy Agency, adviser to 28 industrialised countries on energy policy, sharply cut its world oil demand forecast for 2009.
The US's EIA also lowered its world oil demand forecast in a monthly report today, but trimmed its estimate by 180,000 barrels per day, a less severe reduction than the IEA.
OPEC, the source of more than a third of the world's oil, publishes its monthly view on Wednesday.
In addition to the forecasts for global supply and demand, traders will also focus on the latest snapshot of supply in top consumer the US, also due on Wednesday. US crude oil supplies rose for the sixth consecutive time last week as imports rebounded, and that could have lifted inventories to the highest in almost 19 years.
Oil has recovered to a $47-$54 range for the past four weeks from a low of $32.40 in December. It is still down by almost $100 from a record high above $147 last July.
