On Tuesday benchmark Brent crude oil
prices traded below $58 a barrel as the International
Energy Agency (IEA) said the United States will remain the world's top
source of oil supply growth until to 2020, defying expectations of a
more dramatic slowdown in shale output growth.
Brent crude slipped 71 cents, or 1.22 percent, to $57.63 by 0234 GMT (9.34 p.m EST), ending a three-day rally. The benchmark gained more than 9 percent last week, its biggest weekly rise since February 2011.
"Another report of strong builds in inventories in this week's EIA market report could halt oil's rally," ANZ bank said on Monday, referring to the U.S. Energy Information Administration's stockpiles data release due on Wednesday.
Prices were boosted on Monday after the Organization of Petroleum Exporting Countries (OPEC) released its monthly report, which showed an increased forecast for 2015 with demand for OPEC oil rising to 29.2 million bpd (barrel per day), and a reduction in U.S. supply growth.
In the meantime, Tuesday's IEA report predicted demand for OPEC oil would hold steady at 29.4 million bpd this year, but said U.S. shale oil output growth would only pause amid the current price collapse before regaining momentum.
U.S. crude futures were also trading down 65 cents at $52.21 on Tuesday, snapping three days of gains, after a preliminary survey showed that U.S. commercial crude stockpiles likely hit a record high last week.
