(July 22 Reuters) Crude futures were on track for weekly losses on Friday as investors reassessed U.S. data on oil stocks and excesses in oil products in Europe and Asia.
While many expect global oversupply of oil to ease in the near term, huge amounts of crude remain in vessels at sea and storage tanks on land as the rebalancing takes longer than some had anticipated.
"The narrative of a balanced oil market (in the second half of 2016) has so far been an illusion, " UBS oil analyst Giovanni Staunovo said.
"Supply might actually increase in the near term with the further return of disrupted production and higher Middle East production, while demand growth is set to slow in emerging Asia."
Brent crude briefly fell to a more than two-month low of less than $46 per barrel before rebounding to $46.30 as of 0926 GMT, 10 cents higher. The contract closed 2.1 percent lower in the previous session, and is on track for a decline of more than 2.5 percent for the week.
U.S. West Texas Intermediate traded as low as $44.25 a barrel before bouncing back to $44.74, one cent blow the previous close. It ended Thursday down 2.2 percent and is on track to close the week also more than 2.5 percent lower.
Click on the link below to see the full story from Reuters: (by Libby George)