Oil steadied on Tuesday after almost a week of sharp falls, but the outlook remained weak amid oversupply and several banks cut their price forecasts.
Benchmark Brent crude was down 10 cents at $46.78 a barrel by 0820 GMT. U.S. light crude was 5 cents lower at $44.35.
Signs of strong short-term demand capped losses. Gasoline demand tends to increase in the northern hemisphere summer as U.S. drivers take to the road.
Weekly U.S. gasoline demand data “compares favorably to the five-year average and miles driven also continue to grow year-on-year”, Bank of America Merrill Lynch (NYSE:BAC) said in a note to clients.