By Henning Gloystein
SINGAPORE, March 3 (Reuters) - U.S. crude prices were steady
early on Thursday supported by rising refining activity while
swelling crude stocks weighed, but analysts said that a 20-month
market rout had likely bottomed out.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
trading at $34.68 per barrel at 0058 GMT, virtually unchanged
from their last settlement.
Analysts said that the minimal price movement on Thursday
was due to bullish and bearish fundamentals offsetting each
other.
"Crude oil prices were sideways. Rising U.S. refinery
utilisation is supporting prices. But U.S. crude stockpiles
continue to rise ... Oil inventories rose 2 percent, or 10.4
million barrels, to 517.98 million barrels," ANZ bank said on
Thursday.
More broadly, many analysts think that a 20-month market
rout that has pulled down crude prices by 70 percent may have
ended.
Reuters technical analysts Wang Tao said that U.S. crude
prices had ended a multi-year downtrend this week and that WTI
prices would target prices above $40 per barrel in March.
"The price action in oil adds to the case that the bottom in
the crude oil market could now be in place for 2016," ANZ said.
WTI has gained over a third in value since Feb. 11, when
prices dropped to little more than $26 per barrels, levels not
seen since 2003.
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GRAPHIC on U.S. crude ending long-term technical downtrend http://reut.rs/1OKQh6o
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