By Keith Wallis
SINGAPORE, Oct 20 (Reuters) - Oil prices rebounded in Asian
trade on Tuesday as traders covered short positions after prices
fell at least 3 percent in the previous session, but gains were
capped by worries about oversupply and the health of the global
economy.
Brent crude for December delivery LCOc1 climbed 19 cents
at $48.80 a barrel as of 0132 GMT after settling down $1.85, or
3.7 percent, in the previous session.
U.S. crude for November delivery CLc1 rose 19 cents to
$46.08 after closing down $1.37, or 3 percent. The November
contract expires on Tuesday.
"Short-covering has led to a little bit of a rally," said
Ben Le Brun, market analyst at Sydney's OptionsXpress.
Traders closing November positions ahead of the contract
expiry for U.S. crude could also be supporting prices, Le Brun
said.
But worries over Iran boosting crude production when
international sanctions are lifted and weaker economic growth in
China, the world's second-largest economy, weighed on markets,
Le Brun said.
"The fundamentals remain a little bit stressed," he added.
Iran plans to increase crude production by 500,000 barrels
per day within a week of the lifting of sanctions, a senior
Iranian oil official was quoted as saying on Monday, selling the
oil to traditional customers in Asia and Europe. urn:newsml:reuters.com:*:nL8N12J1PV
China's GDP growth slowed to 6.9 percent in the third
quarter, down on a 7 percent rise in the prior quarter, while
implied oil demand was also lower, official figures and Reuters
data on Monday showed. urn:newsml:reuters.com:*:nB9N12F00W urn:newsml:reuters.com:*:nB9N0TN01Y
That came as U.S. crude stocks likely rose for a fourth
straight week, climbing last week by 3.7 million barrels to
472.3 million barrels, a preliminary Reuters survey taken ahead
of weekly industry and official data showed on Monday.
urn:newsml:reuters.com:*:nL3N12J5D6
Industry group, the American Petroleum Institute (API) will
report its stocks data later on Tuesday, while the U.S.
Department of Energy's Energy Information Administration (EIA)
will release oil inventory data on Wednesday.
Investors are also keeping an eye on the outcome of an
European Central Bank meeting and manufacturing data from China
later this week to give direction to oil markets, Le Brun said.
Thursday's ECB meeting, set against a background of lower
consumer spending, could result in a further round of stimulus
and asset purchases.
(Editing by Ed Davies)