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Oil prices edge higher from 5-year low
[NEW YORK] Oil prices rose modestly from a five-year low on Tuesday, but analysts said market sentiment remains focused on excess supply and weak demand.
US benchmark West Texas Intermediate for February delivery rose 51 US cents to US$54.12 a barrel on the New York Mercantile Exchange.
European benchmark Brent oil for February delivery rose two cents to US$57.90 a barrel in London.
Gene McGillian, broker and analyst at Tradition Energy, said Tuesday's gain reflected that the market had been "overextended" after Monday's drop.
Crude prices have fallen about 50 per cent since June, with the losses accelerating following the November 27 meeting of Organization of Petroleum Exporting Countries at which the cartel declined to cut output in response to lower prices.
"The market continues to try to adjust to that monumental change in policy" in OPEC, Mr McGillian said.
"We didn't even trade above US$55 today," Mr McGillian said. "The market continues to march lower from excess supplies and limited fuel demand."