* Fed says U.S. economy to grow further
* Moody's expects accelerating German growth on robust
demand
* But soaring crude output in Iraq, Iran compounds crude
glut
By Henning Gloystein
SINGAPORE, April 8 (Reuters) - Oil prices edged up early on
Friday, lifted by firm economic indicators from the United
States and Germany which could support fuel demand, but analysts
warned that crude markets were threatened by another downturn
because of ongoing oversupply.
Front month U.S. West Texas Intermediate (WTI) crude futures
CLc1 were trading at $37.64 per barrel at 0040 GMT, up 38
cents from their last close. International Brent futures LCOc1
were up 24 cents at $39.67 a barrel.
Traders said there was some bullish sentiment in oil markets
early on Friday following statements by the U.S. Federal Reserve
that the world's biggest economy was on the path of more
economic growth.
In Europe, rating agency Moody's said that Germany - the
continent's biggest economy - expected a slight acceleration of
its growth to 1.8 percent, benefitting from robust domestic
demand.
Despite encouraging reports from two of the world's biggest
economies, analysts warned that oil prices could fall again soon
as there were few signs that a global overhang in production of
at least 1 million barrels per day (bpd) would be addressed
soon.
"Investors are lacking confidence about improved U.S.
seasonal demand, as a decline in U.S. crude stockpiles (reported
earlier this week) was mainly attributable to weaker imports and
improved refinery utilisation," ANZ bank said.
Outside the United States, production especially in parts of
the Middle East is still soaring.
Iraq said on Thursday that exports from its southern ports
had hit almost 3.5 million bpd by April, up from an average of
3.29 million bpd in March, putting doubts on the feasibility of
a planned meeting by major producers on April 17 to freeze
output levels.
Iran, which was relieved from crippling international
sanctions in January which had cut its crude exports to little
more than 1 million bpd, has said it would only participate in a
production freeze once it had regained its pre-sanctions levels
of 4 million bpd, pouring cold water on any hopes that
ballooning oversupply can be reined in soon.
ANZ bank said that there were signs that a renewed downtrend
could be imminent for crude oil prices.
(Editing by Ed Davies and Joseph Radford)