* U.S.-dollar up 2.46 percent in May
* Russia says global glut to last despite output cuts
* Russia to produce at least 10.81 mln bpd of oil this year
By Henning Gloystein
SINGAPORE, May 13 (Reuters) - Oil prices dipped in early
trading on Friday as a stronger dollar weighed and Russia warned
that a global crude supply overhang could last into next year.
The dollar has recovered 2.46 percent in value from May lows
against a basket of other leading currencies .DXY , reversing
an almost 8-percent fall earlier in the year.
A stronger dollar, in which oil is traded, makes fuel
imports more expensive for countries using other currencies,
potentially hitting demand.
International Brent crude futures LCOc1 were trading at
$47.71 per barrel at 0025 GMT, down 37 cents from their last
settlement.
U.S. West Texas Intermediate WTI crude futures CLc1 were
down 41 cents at $46.29 a barrel.
But analysts said that declining output, especially in North
America was preventing deeper price falls.
"A stronger U.S.-dollar came up against more positive
fundamentals ... due a fall in U.S. oil production," ANZ bank
said on Friday.
U.S. crude oil production C-OUT-T-EIA has fallen 4.7
percent from 2016 peaks in January to 8.8 million barrels per
day (bpd), according to U.S. Energy Information data, and output
is down 8.4 percent from its 2015 peak.
In Canada, crude production outages from oil sand fields
following forced closures due to wildfires still stood around 1
million bpd as of Wednesday, although operators said they were
gradually ramping up output.
Yet top crude oil producer Russia poured cold water on the
notion that recent falls in production in the Americas, Asia and
Africa had wiped out a global production and storage overhang
that helped pull down oil prices by over 70 percent between 2014
and early 2016.
Russian Energy Minister Alexander Novak told reporters on
Thursday that the global oil surplus stood at 1.5 million bpd
and that the market might not balance out until the first half
of 2017.
"(The outlook that the market won't balance until the first
half of 2017) is an optimistic forecast as oversupply persists
and the decline in production volumes is slower than analysts
expected," he said.
Novak said he expected Russia to produce 540 million tonnes
(10.81 million bpd) or more of oil this year, up from 534
million tonnes in 2015.
Canada wildfire shuts crude capacity http://fingfx.thomsonreuters.com/gfx/rngs/1/1706/2971/index.html
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