CORRECTED-UPDATE 6-Geopolitical worries lift oil after Paris attacks, but glut weighs

(Corrects analyst's surname in para 3 to "Klumpp" from "Klump")
* Risk premiums rise after Paris terror attacks
* But analysts see oil prices remaining weak
* World has one month of global oil demand stored in tanks

By Karolin Schaps
LONDON, Nov 16 (Reuters) - Oil prices edged up on Monday on
geopolitical concerns after Friday's deadly attacks in Paris
claimed by Islamic militants, but gains were muted due to a
global crude glut.
France carried out large-scale air strikes against Islamic
State sites in Syria overnight, giving oil market investors
reason to step up buying activity after a week in which crude
benchmark prices fell as much as 8 percent.
"Some risk premium is factored into the market after the
terror attacks in Paris. We had an oversold market, so it is a
technical recovery as well," said Frank Klumpp, oil analyst at
Stuttgart-based Landesbank Baden-Wuerttemberg.
Front-month Brent crude prices were up 34 cents at $44.81 a
barrel at 0915 GMT. U.S. futures traded 36 cents higher at
$41.10 a barrel.
An OPEC delegate from a Gulf producing country said he
believed that in the mid-term oil prices could get some support
due to rising tensions especially if the international community
takes more steps to reduce smuggling of oil and hits oil
facilities under Islamic State's control in Syria and Iraq.

But oil and other commodities could also come under renewed
pressure on fears the attacks will further slow the global
economy.
Many analysts also continue to believe prices will remain
under pressure due to abundant stocks of oil and slowing
economic growth.
"Our outlook is skewed negative into (the first half of next
year). Macro headwinds remain, crude oil inventories are
building," Morgan Stanley (N:MS) said.
Oil prices have dropped more than 60 percent since June last
year as high production and inventories have coincided with an
economic slowdown in Asia, particularly in China but also Japan,
which slipped back into recession in the third quarter.

"The fact that both crude oil and combined crude and product
stocks are near record levels is a reason for concern," Barclays (L:BARC)
bank said in a research note.
Baker Hughes (N:BHI) data showed the first rise in the U.S. oil rig
count in 11 weeks last Friday, while the International Energy
Agency said there was a record 3 billion barrels of crude and
oil products in tanks worldwide.
The oil in storage is comparable to a months' worth of
global oil consumption.

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CHART-Brent crude oil open interest hits record high: http://reut.rs/20VUxtC
GRAPHIC-World petroleum oversupply: http://link.reuters.com/jaz84w
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