Oil edges up after tumble on buildup in U.S. gasoline stocks

By Meeyoung Cho
SEOUL, Sept 24 (Reuters) - Oil prices pared some losses on
Thursday after sharp falls overnight on an unexpectedly large
buildup in U.S. gasoline stocks and seasonally tepid demand.
The global benchmark November Brent contract LCOc1 had
climbed 44 cents to $48.19 a barrel as of 0151 GMT, after ending
the previous session down $1.33 at $47.75 a barrel.
U.S. crude CLc1 rose 47 cents to $44.95 a barrel, having
slumped $1.88 on Wednesday to settle at $44.48.
"A combination of a slightly better supply-side scenario in
terms of prices and a bit of an improvement in industrial
sentiment globally has brought in some support," said Michael
McCarthy, chief market strategist at CMC Markets in Australia.
Data from the Energy Information Administration on Wednesday
showed that U.S. crude oil stocks USOILC=ECI fell 1.9 million
barrels in the week to Sept. 18, the second straight weekly
drawdown, compared with analyst expectations for a decrease of
533,000 barrels.
But gasoline stocks USOILG=ECI rose 1.4 million barrels,
compared with analyst expectations in a Reuters poll for a
819,000-barrel gain. EIA/S
A planned shutdown of Britain's North Sea Buzzard oilfield,
the biggest contributor to the Forties oil stream which is the
largest of the four North Sea crudes used in Brent benchmark,
has been reset to November from October, its operator Nexen
said. ID:nL5N11T2I0
Longer-term, a supply surplus continues to weigh on markets.
"Despite early signs of a cutback in U.S. shale production,
the underlying supply and demand fundamentals remain weak for
both Brent and WTI. This, alongside uncertainties surrounding
China and the broader health of global economy, is capping any
recovery in prices," said BMI Research, part of the Fitch
ratings agency.
"We maintain our below-consensus forecast for both grades in
2016 and 2017, as major supply additions in West Africa, North
America, the North Sea and the Middle East will continue to
outpace the growth in demand, contributing to a rising overhang
of crude in the market."
Asian shares got off to a cautious start on Thursday after
more dour economic news in China and the United States prompted
a bruising selloff the previous day. MKTS/GLOB