* Strong seasonal refinery demand from China supports market
* But analysts say prices to remain low on slowing demand
* Japan's core consumer prices fell 0.1 percent in August
* HSBC warns that economic weakness not confined to China
(Re-leads, adds comment, updates prices)
By Henning Gloystein
SINGAPORE, Sept 25 (Reuters) - Oil markets rose on Friday as
strong seasonal demand from China outweighed weak consumer data
from Japan, although analysts said that the slowing global
economic outlook meant that oil prices would likely remain low
for months to come.
While China's commercial crude oil stocks were virtually
flat between July and August, refined fuel stocks sank 7.82
percent, implying strong demand due to two months of consecutive
price cuts. Demand was also bolstered by the resumption of
coastal fishing and the approaching harvest.
Globally traded Brent futures LCOc1 were at $48.54 per
barrel at 0639 GMT, up 37 cents from their last close. U.S. West
Texas Intermediate (WTI) futures CLc1 were at $45.32 a barrel,
up 41 cents.
Oil prices rose by over a quarter in late August after a
slowing rig count and a reduction in U.S. crude stocks implied a
tightening North American market.
Yet a global oversupply that analysts estimate around 2.5
million barrels per day, remains largely in place due to high
production elsewhere, for instance in Russia and the Middle
East, while demand is slowing, and oil prices have fallen back
10 percent since the beginning of September as the demand
outlook has weakened along with economic growth.
Japan's core consumer prices marked the first annual drop
since the central bank deployed its massive stimulus programme
over two years ago, casting further doubt on whether heavy money
printing alone can accelerate inflation to its 2 percent
target.
HSBC said that markets had focused too much on China's
slowdown, warning that many developed economies were faltering.
"It turns out that developed market imports haven't been
anywhere near as robust as relatively upbeat local demand data
would suggest ... For all their recent swagger, developed
markets are hardly firing on all cylinders. So, don't just blame
China," the bank said on Friday.
ANZ bank said that "risks of further downgrades to emerging
market economic growth will weigh on investor sentiment and keep
any interest in commodities sidelined," adding that it expected
WTI to fall by 10 percent within the next three months and Brent
to drop 3 percent.
(Editing by Joseph Radford and Subhranshu Sahu)