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UPDATE 9-Oil down again; global glut worry offsets U.S. output drop

Published 2015-10-14, 12:01 p/m
© Reuters.  UPDATE 9-Oil down again; global glut worry offsets U.S. output drop
LCO
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* Oil prices down for 3rd straight day; down 7 pct on week
* Collapsing gasoline "crack" weighs on crude
* China Q3 growth, weakest since 2009, further hurts oil
demand
* Coming up: API report on U.S. inventories at 2030 GMT

(New throughout, updating market activity and comments on U.S.
session; changes byline and previous LONDON dateline)
By Barani Krishnan
NEW YORK, Oct 14 (Reuters) - Oil prices fell again on
Wednesday as concerns of a growing global supply glut negated
optimism in recent weeks about declining U.S. production.
Crude futures have lost 7 percent so far this week, sliding
without stop since Monday after OPEC reportedly pumped 110,000
barrels per day more in September than in August, and nearly 2
million bpd above forecast demand for 2015. NL8N12C22M
In comparison, U.S. shale oil production is expected to fall
by 93,000 bpd in November, although it would be the largest
monthly cut since the U.S. Energy Information Administration
(EIA) began compiling shale output data in 2007. ID:nL1N12D1PI
More immediately, U.S. crude stockpiles likely rose by
almost 3 million barrels last week, analysts polled by Reuters
forecast, as refinery runs declined from autumn maintenance
works. The American Petroleum Institute will issue preliminary
stockpiles data at 4:30 p.m. (1730 GMT) on Tuesday ahead of
official inventory numbers from the EIA on Wednesday. EIA/S
Brent LCOc1 , the global benchmark for crude, was down 23
cents, or 0.5 percent, at $49.01 a barrel by 11:32 a.m. EDT
(1532 GMT).
U.S. crude CLc1 slipped 37 cents, or 0.8 percent, to
$46.29.
"We see some renewed selling as this week proceeds," said
Jim Ritterbusch of Chicago-based oil markets consultancy,
Ritterbusch & Associates.
He particularly cited weakness in the gasoline crack
CL-RB1=R - the profit refiners get for turning crude into
gasoline - which he said was weighing on the petroleum complex.
The crack has fallen by a third of its value, or nearly $4 a
barrel, over the past two weeks.
Weaker oil demand from No. 2 global economy, China, was also
hurting crude prices. China's growth for the third quarter is
expected to fall below 7 percent for the first time since the
global financial crisis. urn:newsml:reuters.com:*:nL3N12C29L
OPEC trimmed its estimate of 2016 world oil demand growth by
40,000 bpd to 1.25 million bpd, citing slower growth
inChina. OPEC/M
The International Energy Agency, an energy watchdog for the
West, said on Tuesday the oil market would remain oversupplied
in 2016.
"Despite the progress made in stimulating demand and
discouraging non-OPEC supply, oil producers will face another
year of severe pain if Iranian sanctions are lifted early next
year and other OPEC members do not make way," said David Hufton
at London-based oil broker PVM.

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