* U.S. crude stocks rise against expectations
* OPEC members say price drop short term
* Softer dollar tempers losses in oil prices
(Updates throughout, changes dateline, previous SINGAPORE)
By Amanda Cooper
LONDON, July 23 (Reuters) - Oil prices steadied on Thursday
after a weaker dollar helped offset the negative impact of
rising U.S. stockpiles, which drove U.S. crude prices to near
three-month lows.
Crude oil stocks in the United States rose 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 2.3 million-barrel drop.
U.S. September crude futures CLc1 were 18 cents higher by
0827 GMT on Thursday at $49.37, after having fallen $1.67 on
Wednesday to settle below $50 for the first time since April.
Brent crude LCOc1 was up 9 cents at $56.19 a barrel, after
settling down 91 cents.
Brent has lost around 12 percent in July, its largest
one-month 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 likely to release millions of barrels of
additional supply onto 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
the recent drop in oil prices is likely to be short-term. They
say 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.
Brent's premium to the U.S. benchmark CL-LCO1=R stood at
$6.80 a barrel. The spread has widened more than $3 this month,
the largest such move since February.