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 Benchmark prices regained some ground in early trading, but analysts
saw little chance of a sustained recovery.
"We expect crude oil prices to remain under pressure in the short
term as the stubborn global supply glut continues to dominate the
market," Sucden senior analyst Myrto Sokou said.
Brent crude futures <LCOc1> had risen 40 cents to $48.38 a barrel by
0510 ET, still on track to fall more than 2 percent from the
previous week.
U.S. crude futures <CLc1> were trading at $45.45 a barrel, up 25
cents from the previous evening's close.
The gains followed steep falls the previous day on climbing U.S.
crude inventories, and analysts said oversupply would continue to
pressure oil markets. [EIA/S]
"With oil production of major producers strong, falling output from
U.S. shale will be insufficient to balance the oversupplied oil
market over the next two years," BMI Research said.
BMI added that increased production from Russia and OPEC were
serious obstacles to price recovery.
ANZ Bank said it expected U.S. crude futures to fall by 3 percent in
the coming three months.
A senior OPEC delegate told Reuters the group is unlikely to cut
output when it meets in December if major producers from outside the
group are unwilling to help reduce supplies.
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Also dragging on commodities were a strong U.S. dollar, which makes
oil more expensive to holders of other currencies, and shaky
economic conditions.
The greenback has gained almost 5 percent against a basket of other
currencies since early October. U.S. jobs data due later in the day
was expected to help nudge the U.S. Federal Reserve to be the first
major central bank to raise interest rates since the financial
crisis of 2008/2009. [MKTS/GLOB]
The chief economist at the European Central Bank also warned on
Friday that low oil prices could reflect weak economic conditions
rather than just oversupply.
(Additional reporting by Henning Gloystein in Singapore; Editing by
Dale Hudson)
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