LONDON: Oil futures steadied around $100 a barrel on Monday, retrieving only a fraction of the ground lost over the past three weeks due to worries about the world economy and the impact on fuel demand.
Brent has lost nearly 10 percent since the start of April as growth in the United States and China -- the world's two largest oil consumers -- slowed, while recession in Europe deepened.
June Brent crude slipped 4 cents to $99.61 a barrel by 0900 GMT after earlier briefly moving above $100 a barrel. US crude for June delivery was up 8 cents to $88.09 a barrel after a 3.6 percent loss last week.
"Brent failed to gain the $100 per barrel level on Friday so today we are starting with little momentum," said Oliver Jakob, analyst at Zug, Switzerland-based Petromatrix.
Expectations of weaker demand growth have also hit other commodities, leading to a 1.4 percent fall in the bellwether Thomson Reuters-Jefferies CRB index last week.
"Are we in the midst of a fundamental reappraisal of oil's price potential or merely witnessing a temporary loss of confidence? There is a real chance on this occasion that it is the former," David Hufton of PVM oil brokerage said, citing a tepid global growth forecast, reduced geopolitical concerns and high stocks
"Plenty to be bearish about, therefore, in the absence of a supply interruption, until the price falls to a level which will discourage new oil supply...," he said.
Technical charts showed that Brent may revisit its April 16 low of $98 a barrel, after it failed to rise past a resistance at $100.47, while US crude could fall to $86.82, Reuters markets analyst Wang Tao said.
Hedge funds and other large speculators cut their net long US crude futures and options positions in the week to April 16, the US Commodity Futures Trading Commission (CFTC) said.
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