(Corrects date para 10)
* Analysts scramble to cut oil price forecasts
* Standard Chartered (L:STAN) says oil could drop to $10/barrel
* Traders take record short positions
By Simon Falush
LONDON, Jan 12 (Reuters) - Crude oil steadied at around $32
per barrel on Tuesday, recovering slightly as investors booked
profits after it fell to a near 12-year low on concerns about
oversupply and fragile demand from China.
Analysts at Barclays (L:BARC), Macquarie, Bank of America (N:BAC) Merrill
Lynch, Standard Chartered and Societe Generale (PA:SOGN) all cut their
2016 oil forecasts this week, with Standard Chartered saying oil
could fall as low as $10 per barrel.
Oil has been dragged lower by a glut, China's weakening
economy and stock market turmoil, as well as the strong dollar,
which makes it more expensive for those using other currencies
to buy oil.
Benchmark Brent crude LCOc1 fell to a low of $30.43 per
barrel, a level last seen in April 2004, before recovering to
$32.05, up 50 cents, by 1427 GMT.
Analysts said the bounce was likely to be short lived as
investors booked profits.
"Oil prices have bounced just over $30 per barrel, in a weak
fashion that brings dead cats to mind," Seth Kleinman, head of
energy research at Citigroup (N:C) said.
U.S. crude West Texas Intermediate (WTI) CLc1 fell to a
low of $30.41 per barrel, a level last seen in December 2003,
before recovering to $31.77, up 38 cents.
The overall tenor of the market remained bearish, analysts
said.
Trading data showed that managed short positions in WTI
crude contracts, which would profit from a further fall in
prices, are at a record high, indicating that many traders
expect further falls.
China's slowing economy has also weighed on oil, which has
shed more than 70 percent of its value since mid-2014.
And while demand looks fragile, supply from key producers
remains robust.
Iraq, second-biggest producer within the Organization of the
Petroleum Exporting Countries (OPEC), plans to export a record
of around 3.63 million barrels per day from its southern oil
terminals in February, said trade sources citing a preliminary
loading programme.
In industry news, Nigeria's oil minister said a "couple" of
OPEC members had requested an emergency meeting, adding that
current market conditions support the need to hold such a
gathering.
Oil major BP BP.L announced plans to cut at least 4,000
jobs in the face of oil's sustained declines.
GRAPHIC on short positions vs WTI crude prices http://reut.rs/1ZVvTaY
GRAPHIC on U.S. dollar rise/oil price drop http://tmsnrt.rs/1ZXwlWn
GRAPHIC on WTI, Brent put options prices http://tmsnrt.rs/1ZXBJsu
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>