Oil stable on growth forecasts, oversupply fears loom

Oil prices were relatively stable on Wednesday, supported by the healthy economic growth and expectations of a weaker dollar dueled demand.

U.S. West Texas Intermediate (WTI) crude futures were at $59.17 a barrel at 0123 GMT, down 2 cents from their last settlement. WTI was trading above $65 in early February.

Brent crude futures were at $62.77 per barrel, up 5 cents from their last close. Brent was above $70 a barrel earlier this month.

Ongoing weaknesses in the US Dollar, prompting a significant demand from countries using other currencies locally as well as healthy demand from economic growth. The American Petroleum Institute said on Tuesday that U.S. crude inventories rose by 3.9 million barrels in the week to Feb. 9, to 422.4 million.

The output has risen significantly due to a soaring US production, which has increased by more than 20 percent during the last two years. U.S. crude is increasingly appearing on global markets. More is set to come as the Louisiana Offshore Oil Port in the Gulf of Mexico starts testing supertankers for exports.