* U.S. crude stocks rise against expectations
* OPEC members say price drop will be short-term
* Softer dollar tempers losses in oil prices
(Updates prices)
By Amanda Cooper
LONDON, July 23 (Reuters) - The opposing forces of a weaker
dollar and evidence of rising U.S. crude stockpiles in an
already oversupplied market kept oil prices steady on Thursday.
Crude oil stocks in the United States rose by 2.5 million
barrels last week to above the five-year seasonal average,
according to data from the Energy Information Administration
(EIA), trumping expectations for a drop of 2.3 millions.
U.S. September crude futures CLc1 were 3 cents lower at
$49.16 by 1020 GMT, having fallen by $1.67 on Wednesday to
settle below $50 for the first time since April.
Brent crude LCOc1 was down 11 cents at $56.02 a barrel.
The price of Brent has fallen by about 12 percent in July,
its largest monthly fall since March, pummelled by concern about
the ability of the global economy to absorb a surplus of oil.
The oil glut looks set to grow as an Iranian nuclear deal
with the West is expected to release millions of barrels of
additional supply on world markets. ID:nL1N1002DS
"The bears are still in control of the market," PVM energy
analyst Tamas Varga said.
"A close below ($55.60 for Brent) is a sell and, in that
case, there is nothing really that could stop this contract from
falling down to $53.19, the daily low in the August contract on
Jan. 13," Varga added.
Still, OPEC delegates from Gulf states and other nations say
that the recent drop in prices is likely to be short-term. They
say that lower prices will not deter the cartel from keeping
output high to defend market share. ID:nL5N10139W
The dollar headed for its first weekly loss in a month
.DXY but held near a three-month high, which tends to make it
more profitable for non-U.S. investors to sell
dollar-denominated assets such as oil or gold.
"Fundamentally, there's not a lot to change the picture
dramatically in the short term. Prices seem to be contained in a
range for now," said Ben Le Brun, market analyst at
OptionsXpress in Sydney.
Volatility in the oil price has calmed this week. Brent has
seen a difference of only $1.54 between this week's intraday
high and low, the narrowest range since the last week in 2013.