SINGAPORE, Nov 9 (Reuters): Oil prices held steady on Thursday after falling late in the previous session, supported by ongoing supply cuts led by OPEC and Russia.
However, traders said a price rally that has pushed up Brent crude futures by more than 40 per cent since July may have run its course due to increases in US supplies and some indicators of a demand slowdown.
"Prices may have reached a short-term peak," said Fawad Razaqzada, analyst at futures brokerage Forex.com.
Brent futures were at $63.50 per barrel at 0818 GMT, virtually unchanged from their last close. But that is over $1 off the more than two-year high of $64.65 touched earlier this week.
US West Texas Intermediate (WTI) crude was at $56.85 per barrel, up 4 cents but also some way off this week's more than two-year high of $57.69 a barrel.
Support continues to come from efforts led by the Per organisation of the Petroleum Exporting Countries (OPEC) and Russia to withhold supplies in order to tighten the market and prop up prices.
OPEC will discuss output policy during a meeting on Per Nov 30, and it is expected the group will extend the current cuts beyond their expiry in March 2018.
"With the OPEC/non-OPEC deal extension beyond March 2018 a certainty, prices may become stronger and temporarily reach the $65-$70 per barrel range in 2018," said energy consultancy FGE.
Despite this, many analysts say the strong price rally of the past months may have run its course, at least for now.
US crude stockpiles rose 2.2 million barrels in the week to Per Nov 3, to 457.14 million barrels, the Energy Information Administration said on Wednesday, contrary to analysts' expectations for a decrease of 2.9 million barrels.
US crude production inched up 67,000 barrels per day (bpd) to 9.62 million bpd, the highest on record.
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