* Analysts say production freeze would do little to rein in
glut
* Brent crude curve out to 2017 flattens
* But rising demand to support prices as China's car sales
soar
* Looming maintenance to cut output -Energy Aspects
(Adds comment, updates prices)
By Henning Gloystein
SINGAPORE, April 12 (Reuters) - Oil prices were stabile on
Tuesday, with U.S. crude futures holding above $40 per barrel
and Brent approaching $43 ahead of a meeting of major producers
to discuss freezing output levels to rein in ballooning
oversupply.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
trading at $40.45 per barrel at 0651 GMT, up 9 cents from their
last settlement.
International Brent crude futures LCOc1 were up 5 cents at
$42.88 a barrel, only 18 cents off their 2016-high reached the
previous day.
Major oil producers from the Middle East and Russia, but
excluding the United States, plan to meet in Qatar's capital
Doha next Sunday. They will discuss measures to rein in
ballooning oversupply which sees as many as 2 million barrels of
crude produced every day in excess of demand, leaving storage
tanks around the world filled to the rims with unsold and
unwanted fuel.
Most analysts expect producers to freeze output around
current levels, which being beyond consumption and close to
record levels would do little to address the glut.
Reflecting a widespread view that oil prices will stay low
for some time, the Brent forward price curve has significantly
flattened, with the timespread between front-month futures and
those for delivery in December 2017 narrowing to just $4.70 a
barrel currently from $8.70 in early March.
"The potential risk for prices is for the downside as
freezing output at current levels would be more of a symbolic
act rather than a real market intervention. But you need to be
open to surprises in this market," said Ric Spooner, chief
market analyst at CMC Markets in Sydney.
While Spooner said that a production freeze would do little
to address the immediate glut, he added that keeping key Middle
East and Russian output around current levels might start
leading to a more balanced market, especially if demand stays
strong.
Vehicle sales in China rose 8.8 percent in March from a year
earlier to 2.4 million, the China Association of Automobile
Manufacturers said on Tuesday, supporting strong gasoline demand
in the country.
"There is demand growth, and production in the U.S. is
falling, so if against that background there was a freeze,
markets could get tighter at some stage," he said.
Analysts at Energy Aspects said there was "little doubt"
that fundamentals would improve markedly from June because of
maintenance in the North Sea and Russia as well as falling
output in Brazil and also the United States.
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