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Oil demand outlook should worry investors, analysts warn

Oil prices may have risen since the start of the month, but analysts believe the lackluster outlook for global demand – amid a shaky global growth environment and stubborn oversupply - should be more of a concern for investors.

"One consideration (in the near-term) that we think is going to be more relevant is on the demand side, rather than supply," Marc Kofler, research analyst at Jefferies, told CNBC Monday.

"We are coming into what we expect to be a heavy refinery maintenance season in the OECD (Organization for Economic Co-operation and Development) and we would expect that to limit the amount of crude oil that you're seeing being bought by these refineries and that could actually have some near-term negative momentum around the oil price," he added.

Prices have risen more than 10 percent since the start of the month as speculation has mounted about potential action by oil producer group OPEC when it meets on the sidelines of an energy conference in Algeria next month.

Prices rose by around 2 percent on Monday, with Brent crude futures trading at around $47.95 a barrel and U.S. West Texas Intermediate (WTI) at $45.40 a barrel when European stock markets closed. An extra fillip came after Russian Energy Minister Alexander Novak said he was consulting with Saudi Arabia and...