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US crude oil edges up after drops, but market remains oversupplied

Published 2015-11-02, 07:38 p/m
© Reuters.  US crude oil edges up after drops, but market remains oversupplied
CL
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By Henning Gloystein
SINGAPORE, Nov 3 (Reuters) - U.S. crude futures edged up
early on Tuesday, but the market outlook remains bearish as
supply still exceeds demand and due to worries the dollar will
strengthen when the U.S. Federal Reserve eventually raises
interest rates.
Benchmark U.S. crude futures CLc1 were trading at $46.27
per barrel at 0028 GMT, up 13 cents from their last settlement.
The slight rise followed falls in the previous session as
Russian production hit a post-Soviet peak while China's demand
outlook weakened. urn:newsml:reuters.com:*:nL3N12X08T
"Crude continues to remain under pressure due to emerging
supply-side news and slowing Chinese demand. Russian oil output
broke a post-Soviet record in October for the fourth time this
year. News from Iran is also painting a negative picture," ANZ
bank said in a morning note.
In North America, U.S. crude oil stockpiles likely rose by
2.7 million barrels last week, growing for a sixth consecutive
week, a Reuters poll showed. Industry group the American
Petroleum Institute (API) will issue its preliminary inventory
data on Tuesday before official numbers on Wednesday from the
U.S. government.
At the same time, traders are keeping an eye on U.S.
monetary policy as a rise in American interest rates would
likely push up the dollar against other currencies, making oil
imports more expensive in some other countries.
"With the focus on U.S. economic data this week, anything
supportive of the Fed raising rates could see commodity markets
come under some pressure," ANZ said.

DATA/EVENTS
* The following data is expected on Monday (GMT):
1445 U.S. ISM-New York index Oct
1500 U.S. Factory orders Sep

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