* U.S. crude stocks rise against expectations
* OPEC members say price drop short term
* Dollar near 3-month high, weighs on oil prices
(Updates prices)
By Jacob Gronholt-Pedersen
SINGAPORE, July 23 (Reuters) - Oil prices held steady on
Thursday, with U.S. crude trading below $50 a barrel near its
lowest in more than three months as rising U.S. stockpiles and a
strong dollar weighed on the commodity.
Crude oil stocks in the United States rose 2.5 million
barrels last week to above the five-year seasonal average, data
from the Energy Information Administration (EIA) showed,
contrasting with expectations of a 2.3 million-barrel drawdown.
"Demand is reasonably buoyant in the United States, but
there's just so much supply," said Ben Le Brun, market analyst
at OptionsXpress in Sydney.
"It's going to need a significant pickup in economic
activity to meet the current oversupply," he said.
Crude stocks at the Cushing, Oklahoma, delivery point for
the U.S. crude contract, also rose, the EIA said. EIA/S
U.S. crude for September delivery CLc1 was 3 cents higher
at $49.22 by 0651 GMT, after dropping $1.67 on Wednesday to
settle below $50 for the first time since April.
Brent crude LCOc1 was trading 13 cents lower at $56 a
barrel, after settling down 91 cents.
Brent has shed about 12 percent this month on concerns about
demand and the possibility that Iran's nuclear deal with six
global powers could lead to higher supply from the OPEC member
as sanctions against Tehran are lifted. ID:nL1N1002DS
Still, OPEC delegates from Gulf states and other nations say
the drop in prices is likely to be short term and will not
deflect the cartel from its policy of keeping output high to
defend market share. ID:nL5N10139W
The dollar eased .DXY but held near a three-month high,
making oil and other dollar-denominated commodities expensive
for holders of other currencies.
"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 Le Brun.
Brent's premium to the U.S. benchmark CL-LCO1=R stood at
$6.8 a barrel, widening more than $3 this month.
(Editing by Himani Sarkar and Sunil Nair)