Brent crude recovered after a steep fall on Friday, but was on track for the biggest
weekly loss in more than two months.
Brent crude was trading up 0.64% at $45.47 per barrel, but on track for a more than 5% weekly loss.
U.S. crude was down 0.48% at $41.54 a barrel. Yesterday, the benchmark closed down almost 3% on a 4.2 million-barrel rise in U.S. crude inventories.
The International Energy Agency reported earlier that there was a record 3 billion barrels in tanks worldwide, and analysts find the underlying sentiment bearish, without anything that could support prices in the long-term.
In its Monthly Oil Market Report, the IEA said that swelling global stockpiles of crude and oil products could worsen the overhang into next year.
"...The current forecast is for a mild winter in Europe and the U.S. If it turns out to be true, bulging stock levels will add further pressure and oil market bears may choose not to hibernate," the IEA said.
Crude markets have been hurt by oversupply, estimated between 0.7-2.5 million bpd being produced above demand. This led to prices falling by almost two-thirds since June 2014.
The oversupply results from high production by most major producers, including OPEC, Russia and North America.
On the demand side, an economic downturn in Asia, led by the region's two biggest economies China and Japan, has led to fears over slowing consumption, although it has so far held up.
