Investing.com - Oil futures swung between gains and losses in volatile trade on Tuesday, amid ongoing uncertainty about how quickly the global glut of crude is set to shrink.
Crude oil for delivery in November on the New York Mercantile Exchange tacked on 92 cents, or 1.95%, to trade at $48.02 a barrel during U.S. morning hours. Prices traded in a wide range between $46.64 and $48.13. A day earlier, Nymex oil prices plunged $2.53, or 5.1%.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for December delivery inched up 52 cents, or 1.02%, to trade at $50.77 a barrel. On Monday, Brent futures lost $2.66, or 5.03%.
In its monthly report released earlier in the session, the International Energy Agency warned that oil markets would likely remain oversupplied next year, as oil demand growth slows down amid an expected return of Iranian oil.
The agency cut its forecast for oil demand growth for next year by about 200,000 barrels a day compared to its previous assessment in September.
"A projected marked slowdown in demand growth next year and the anticipated arrival of additional Iranian barrels--should international sanctions be eased--are likely to keep the market oversupplied through 2016," the agency said.
Oil prices dropped more than 5% on Monday on news of higher output by the Organization of the Petroleum Exporting Countries, despite a persistent glut in global supplies.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
The oil market has been volatile in recent months amid uncertainty about how quickly the global glut of crude is set to shrink. Despite this tighter outlook for North America, output remains robust in other countries.
Saudi Arabia and other Gulf OPEC members have indicated they will continue to stick to their policy of defending market share by keeping production high.
Oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.75 a barrel, compared to $3.15 by close of trade on Monday.