SINGAPORE, Jan 7 (Reuters) - U.S. oil prices edged away from
2009 lows in early trading on Thursday but overall market
sentiment remained extremely bearish due to huge unused amounts
of petroleum sitting idle in storage tanks and as China's
economy was showing no signs of recovery.
U.S. West Texas Intermediate (WTI) futures CLc1 were
trading at $34.23 per barrel at 0026 GMT, up 26 cents from their
last settlement but within half a dollar of 2009 lows reached on
Wednesday at $33.77 per barrel.
"Data suggest gasoline and distillate fuel stockpiles
increased 10.6 million barrels and 6.3 million barrels,
respectively, last week. The rise in gasoline and distillate
inventory more than offset the fall in crude oil inventory
levels by 5.09 million barrels to (still near record) 482.3
million barrels last week," ANZ bank said.
The huge storage overhang means that even if U.S. production
falls this year as drillers succumb to low prices, it will take
many months to work down excess supplies, and with the global
economy looking shaky due to China's slowdown, traders said the
outlook for oil remains for cheap prices for much of this year.
(Editing by Michael Perry)