Brent crude held at $120, after posting steep losses in the previous session, as a cut in global oil consumption forecast by the EIA and an unexpected surge in U.S. crude stocks reinforced fears demand growth may slow.

The broader markets, including oil, are on risk-off mode at this point because of the series of negative numbers we have seen recently, said Natalie Robertson, an analyst at ANZ. Oil markets would be flat to lower over the next few days, with support coming in if there are worries on the supply side.