Oil prices rise on Russian supply concerns
U.S. crude stockpiles fall more than expected
EIA sees longerterm supply outstripping demand

SINGAPORE, Jan 15 Reuters Oil prices rose on Wednesday trimming losses from the previous day, as the focus turned back to potential supply disruptions from sanctions on Russian tankers, though gains were capped as the market awaited more clarity on their impact.

Brent crude futures edged up 51 cents, or 0.6, to 80.43 a barrel by 0735 GMT, after dropping 1.4 in the previous session. U.S. West Texas Intermediate crude climbed 64 cents, or 0.8, to 78.14 a barrel after a 1.6 decline.

Prices slipped on Tuesday after the U.S. Energy Information Administration predicted oil would come under pressure over the next two years as supply would outpace demand.

The dominant driver has been all about the Russian oil sanctions lately, compounded by a streak of stronger U.S. economic data, said Yeap Jun Rong, market strategist at IG.

The key question remains on how much Russian supply will be lost in the global market and whether alternative measures can offset the shortfall, said Yeap, adding that in the near term oil may give up some of its sharp gains from the past week.

The market also found some support on Wednesday from a drop in crude stockpiles in the U.S., the world39;s biggest oil consumer, reported by the American Petroleum Institute late on Tuesday.

Oil prices are trading firmer in early morning trading in Asia today after API…