Oil prices edged above $53 a barrel on Tuesday, under pressure from warm weather and ample supplies, as analysts predicted the market would head toward $50 before fresh buying enthusiasm emerged, Reuters reports.
Prices last week fell to a 19-month low of $51.56 for U.S. crude, taking losses since the end of last year to around 15 percent. By 1050 GMT on Tuesday, U.S. crude was 18 cents higher at $53.17, while Brent futures gained 39 cents to $53.51.
Other commodities, which have also had a rocky start to the year, remained under pressure, with zinc falling around 3 percent. "We should not underestimate the global mood on commodities," said Frederic Lasserre of SG CIB in Paris. "There is not as much appetite for commodities any more."
On oil, he predicted the market would test $50 in the near term, but then fresh buying interest could emerge. The sharp price fall so far this year has alarmed the Organization of Petroleum Exporting Countries, which has agreed two production cuts.
A first cut of 1.2 million barrels per day took effect from November 1 and a second of 500,000 bpd is scheduled from February 1.
Nigerian Energy Minister Edmund Daukoru said on Tuesday OPEC should wait to see the effects of its February output reduction before deciding on deeper cuts.
But Venezuelan Energy and Mines Minister Rafel Ramirez said oil prices had fallen "too much" and that he would favor an emergency meeting before the producer group's next scheduled conference on March 15.