* IEA sees oil investment falling 20 pct in 2015
* OPEC not expected to change no-cut policy
* API oil inventory data due at 4:30 p.m. ET (2130 GMT)
(Updates prices, adds comment)
By Nia Williams
CALGARY, Alberta, Nov 10 (Reuters) - Crude prices rose on
Tuesday after the International Energy Agency noted a sharp drop
in oil investment, though the broader picture of an oversupplied
market limited any gains as traders focused on inventory data
due later in the day.
Brent crude LCOc1 was up 23 cents at $47.42 a barrel by
1801 GMT, having fallen for four trading days in a row. U.S.
crude CLc1 rose 44 cents to $44.32 a barrel.
Prices rallied to session highs in mid-morning U.S. trade,
which one trader attributed to the U.S. National Hurricane
Center's forecast that tropical storm Kate will become a
hurricane by tonight. It said the storm is expected to pass
north of Bermuda and remain well offshore the U.S. East
Coast. urn:newsml:reuters.com:*:nEMN1OEEKD
Other market players said the move was driven by technical
trading in U.S. crude.
In its World Energy Outlook, the IEA estimated that
investment in oil would decline more than 20 percent this year
and the trend would continue into 2016.
It added oil was unlikely to return to $80 a barrel before
the end of the decade, despite the cuts in investment, as annual
demand growth struggles to top 1 million barrels per day.
ID:nL8N134381
Teddy Sloup, senior market analyst at iitrader.com LLC in
Chicago, said traders on Tuesday had been targeting a technical
level $43.50 a barrel and when U.S. crude failed to break lower
the market bounced, although it would likely struggle to hold
gains.
"If the stock market is able to sell off from now until the
end of the week you have to believe crude is going after the
early October low (of $42.58)," Sloup said. "Supply is not going
anywhere, there's tons out there and the market feels heavy."
The American Petroleum Institute will release its crude
inventory data later on Tuesday at 4:30 p.m. ET (2130 GMT) and
any build could push prices lower. U.S. crude inventories are
forecast to build for a seventh straight week. EIA/S
The official U.S. Energy Information Administration
inventory data will be delayed until Thursday because of the
U.S. Veterans Day holiday on Wednesday.
"It has been the weekly (U.S.) inventory report that has
been driving the market for the past three weeks," said Ole
Hansen, Saxo Bank head of commodities research.
Producer group OPEC holds its next policy-setting meeting on
Dec. 4 and is widely expected to continue with its no-cut policy
initiated in November last year.