Oil futures were little changed in choppy trading today as data showed that demand for petrol jumped in the United States last week, offsetting the impact of a much larger-than-expected build in crude inventories.
The figures came as the market braced for the outcome of a producer meeting set for Sunday in Doha to discuss freezing output, widely expected to do little to trim oversupply.
US crude inventories rose 6.6 million barrels last week to 536.53 million barrels, the Energy Information Administration said, compared with analyst expectations for a 1.9 million-barrel rise.
A larger-than-expected draw in gasoline inventories and falling US crude production, however, softened the blow of soaring crude stocks.
Petrol fell by 4.2 million barrels to 239.76 million, compared with an analyst forecast for a 1.4 million-barrel draw.
"There's this gasoline demand, and it's otherworldly. I can't begin to describe it any other way," said Carl Larry, director of business development for oil and gas at Frost & Sullivan.
"Without a doubt, we're going to see record gas demand in the US this year, and that might even hit 10M b/d."
Brent crude was down 9 cents at $44.60 per barrel by 5.08pm Irish time, while US crude fell 3 cents to $42.14.
"Ultimately, the downside based upon inventory figures is limited because of two factors: the strong gasoline demand and falling U.S. crude production," said Anthony Headrick, energy market analyst at CHS Hedging.
Prices were under pressure earlier in the session, falling more than two percent after comments by Saudi Oil Minister Ali al-Naimi in the al-Hayat newspaper in which he confirmed his country's position that an outright production cut was out of the question.
"Forget about this topic," al-Naimi told the newspaper when asked about any possible reduction in his country's crude output.
Iranian Oil Minister Bijan Zanganeh does not plan to attend the Doha meeting, but Iran will send a representative, an Iranian journalist from the Seda weekly wrote on Twitter.
Iran has said it does not plan to participate in the freeze agreement as it seeks to boost its production in the post-sanctions era.
Morgan Stanley analysts said the market may still be underestimating the potential near-term headline upside risk of the Sunday meeting.
But others remained sceptical. "We have muted expectations for any meaningful impact on crude fundamentals from the April 17th Doha meeting," Macquarie Capital analysts wrote in a note.
"We do not believe that anyone is going to cut production to get back into compliance with January levels."
Earlier, OPEC warned that the world remains awash with crude ahead of a crunch meeting in Doha between cartel members and other major producers to discuss a production freeze to boost the oil price.
The Organisation of the Petroleum Exporting Countries said in its April monthly report that oil prices rose more than 20% in March, continuing a slow recovery from the huge drop of 2014-15.
"Positive market sentiments continue to arise from the output freeze plan being considered by major crude exporters," as well as an expected fall in output in the US and elsewhere, OPEC said.
"Nevertheless, hurdles prevail as oversupply persists and inventories remain high," it warned.
All oil producers, not just those in the 13-nation OPEC but also non-cartel members like Russia, have suffered from the more than 60% drop in oil prices since the middle of 2014.
An agreement in Doha on Sunday to freeze production would, in theory at least, help boost prices and help repair their in some cases - for example Venezuela - tattered public finances.
But a deal among the 15 or so oil producers representing around 75% of global output expected at the meeting is far from guaranteed.
OPEC member Iran has so far rejected attempts to freeze production as it ramps up output following the lifting of sanctions this year as part of 2015's nuclear deal with major powers.
Saudi Arabia's deputy crown prince Mohamed bin Salman has said the kingdom, OPEC's top producer, would only freeze output if Iran and other major producers are also on board.
