* Brent crude futures jump back above $50 per barrel
* OPEC sees tight market despite record output
By Henning Gloystein
SINGAPORE, July 1 (Reuters) - Oil prices rose early on
Friday, with Brent jumping back above $50 per barrel, as
investors positioned themselves for more price increases this
year in expectation of a tighter market.
International Brent crude oil futures LCOc1 were trading
at $50.04 per barrel at 0026 GMT, up 33 cents from their last
settlement. U.S. West Texas Intermediate (WTI) crude CLc1 was
up 28 cents at $48.61 a barrel.
Traders said the higher prices were a result of a tightening
physical market, in which large oversupply that led to the
2014-2016 price slump was now being brought back into balance.
A further easing of monetary policy expected on the back of
Asia's slowing economies and because of Britain's vote to leave
the European Union was also seen as a reason for financial
traders to put money into commodities, which saw one of the
strongest quarterly performances in years in the second quarter
of 2016.
"The spectre of further easing in monetary policies around
the world continues to support commodity markets. With
quarter-end selling also behind us, investors positioning should
start to turn more bullish," ANZ Bank said on Friday.
Prices were also supported by physical markets. Despite oil
output from the Organization of the Petroleum Exporting
Countries (OPEC) rising to a record 32.82 million barrels per
day (bpd) in June, OPEC expects demand for its supplies to be
higher still.
GRAPHIC on commodities in 2016 http://link.reuters.com/reb25t
GRAPHIC on asset performance in 2016 http://tmsnrt.rs/28XmyLd
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(Editing by Joseph Radford)