Crude-oil futures were trading slightly higher in Asia Thursday, recovering part of their overnight losses, ahead of some U.S. economic data but analysts were keeping their eyes peeled for any developments in Iran's nuclear talks.
Oil prices this week have straddled a mixed set of demand forecasts and data on oil market fundamentals that have guided the direction of price movement, but only momentarily.
Crude oil rose earlier this week as the Organization of Petroleum Exporting Countries raised its global demand outlook but prices dipped after International Energy Agency reduced its demand forecast Wednesday while the U.S. reported another, albeit smaller-than-expected, increase in oil stockpiles.
While oil prices continue to take cues from equities and the U.S. dollar, analysts say recent news of progress in Iran's nuclear talks with the International Atomic Energy Agency could bring the issue back in focus.
Iran agreed on "some points" in talks with experts from the U.N. atomic watchdog in Tehran on Wednesday, its lead negotiator at the meeting said, according to an AFP report.
"A return of oil supplies -- if an agreement is met and sanctions are removed -- could mean the $10-$15/bbl risk premium will be washed out of oil markets very quickly," said ANZ in a research note.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $97.19 a barrel at 0652 GMT, up $0.18 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.18 to $118.06 a barrel.
Fresh macroeconomic data from the U.S. could continue to drive prices in the short term with Thursday's jobless claims and some manufacturing and industrial numbers at week's end likely to present a bullish guidance, said Jim Ritterbusch at Ritterbusch and Assoc.
"Consequently, it feels like the market has yet to place its highs," he said.
Nymex reformulated gasoline blendstock for March -- the benchmark gasoline contract -- rose 131 points to $3.0485 a gallon, while March heating oil traded at $3.2216, 28 points higher.
ICE gasoil for March changed hands at $1011.50 a metric ton, up $0.50 from Wednesday's settlement.
