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Crude oil prices edge up; but oversupply, strong dollar drag

Published 2015-11-05, 08:42 p/m
© Reuters.  Crude oil prices edge up; but oversupply, strong dollar drag
LCO
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By Henning Gloystein
Singapore, Nov 6 (Reuters) - Crude oil prices edged up on
Friday after falling over 2 percent the previous session, with
analysts saying oversupply and a strong dollar would continue to
weigh on fuel markets.
U.S. crude futures CLc1 were trading at $45.37 a barrel at
0129 GMT, up 17 cents from their last settlement, while Brent
crude LCOc1 rose 14 cents to $48.12 a barrel. The slight
increases came after drops the previous day on the back of
climbing U.S. crude inventories. urn:newsml:reuters.com:*:nL3N13018I
Analysts said that oversupply would pressure oil markets.
"We have seen few signs recently indicating a change of tack
in the oil markets," said French investment bank Natixis.
"Oil prices will remain under pressure as long as the
surplus remains in the market," the bank added, referring to
global production being 1-2 million barrels per day above
demand.
The strong U.S. dollar is also seen as a drag on commodity
markets as it makes imports for countries with other currencies
more expensive.
The greenback has gained almost 5 percent against a basket
of other leading currencies .DXY since early October as
markets expect the U.S. Federal Reserve to be the first major
central bank to raise interest rates since the global financial
crisis of 2008/2009.
"Rising speculation that the Fed will raise rates will put
further downward pressure on commodity prices," ANZ Bank said on
Friday.

DATA/EVENTS
* The following data is expected on Friday (GMT):
0700 Germany Industrial output Sep
0745 France Trade data Sep
1330 U.S. Nonfarm payrolls Oct
1330 U.S. Unemployment rate Oct
2000 U.S. Consumer credit Sep

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