* Physical oil overhang remains in place, weighs on futures
* U.S. equities turn lower, give up early gains
* British crude oil production to rise
(Adds analyst comment, API data, paragraphs 3, 7-9)
By Robert Gibbons
NEW YORK, Sept 9 (Reuters) - Oil prices fell nearly 4
percent on Wednesday, pressured by ample supply and concerns
about demand being curbed by slowing economic growth.
Oil futures extended losses as U.S. equities turned lower
after the prospect of economic stimulus from China boosted stock
markets in Japan and Europe. .N MKTS/GLOB ID:nL4N11F01S
"The (oil futures) complex displayed a heavy feel throughout
the session as it was unable to advance with the equities early
in the day but came off hard late session when the U.S. stock
market swung into the negative column," Jim Ritterbusch,
president at Ritterbusch & Associates in Galena, Illinois, said
in a note.
Crude oil futures have been under pressure from concerns
about swollen inventories, high global production and the
increasing likelihood that Iranian barrels will return to export
markets even as slowing growth in China threatens demand.
Brent crude LCOc1 fell $1.94, or 3.92 percent, to settle
at $47.58 after climbing 4 percent in the previous session.
U.S. crude CLc1 dropped $1.79, or 3.9 percent, to settle
at $44.15, having eased on Tuesday as trading resumed after the
Monday's Labor Day holiday.
Brent and U.S. crude fell to session lows in post-settlement
trading after American Petroleum Institute data showed U.S.
crude stocks rose 2.1 million barrels last week as refineries
cut output. API/S
Gasoline and distillate inventories also increased.
Analysts surveyed by Reuters had expected crude stocks to be
up 900,000 barrels. EIA/S
The U.S. Energy Information Administration cut its forecast
for 2015 and 2016 world oil demand growth in its monthly report.
ID:nEMN1ILGY0
Traders awaited a fresh snapshot of U.S. oil inventories
from industry and government, starting with American Petroleum
Institute data due at 4:30 p.m. EDT.
While Saudi Arabia's crude oil production dipped by 100,000
barrels per day in August, the Organization of the Petroleum
Exporting Countries continued to produce close to record
volumes. ID:nL5N11F22U
Russia and Mexico have indicated they will not cut
production, cooling speculation that some producers might
organize to lower output to support prices.
ID:nL1N11E1DU ID:nL4N11D0R1
Britain's oil and gas industry association said the
country's output was set to post a gain in 2015, the first in 15
years, reflecting investment in more efficient technology.
ID:nL5N11E2RT
Oil prices are off more than 50 percent since June 2014
because of the global supply glut. In recent weeks, oil rallied
in volatile trading after falling to 6-1/2-year lows when a
stock market slide in China sent global equities and commodities
prices tumbling.