UPDATE 9-Economic uncertainty, supply glut weigh on oil after Paris attacks

* Terror attack aftermath raises concern over euro zone
growth
* Analysts see oil prices remaining weak
* World has one month of global oil demand stored in tanks

(Recasts after market turns negative, adds analyst comment)
By Karolin Schaps
LONDON, Nov 16 (Reuters) - Oil prices edged lower on Monday
as investor concern about the economic impact from Friday's
deadly attacks in Paris, claimed by Islamic State, and a global
glut of crude supplies kept prices in check.
France carried out large-scale air strikes against Islamic
State sites in Syria overnight and lingering fear after Friday's
attacks increased uncertainty over the outlook for the euro zone
economy.
"Friday's dreadful events and their aftershocks all threaten
economic growth; hence the market is coming lower," PVM Oil
Associates analyst Tamas Varga said.
Front-month Brent crude prices were down 71 cents, or 1.6
percent, at $43.76 a barrel at 1502 GMT. U.S. futures fell 33
cents to $40.41 a barrel after touching an intraday high of
$41.88.
Oil prices last week racked up their biggest weekly losses
in eight months, pressured by swelling storage of crude on both
land and sea. urn:newsml:reuters.com:*:nL3N1382GY
An OPEC delegate from a Gulf oil-producing nation said he
believed that oil prices could gain some support in the medium
term from rising tensions, particularly if the international
community steps up measures to reduce oil smuggling and hits oil
facilities under Islamic State's control in Syria and Iraq.
urn:newsml:reuters.com:*:nL8N13A0O7
Many analysts also believe that prices will remain subdued
because of abundant stocks of oil and slowing economic growth.
urn:newsml:reuters.com:*:nL1N1381WC urn:newsml:reuters.com:*:nL3N13B02E
"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.
urn:newsml:reuters.com:*:nL3N1371FH
"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 were a record 3 billion barrels of crude and
oil products in tanks worldwide. urn:newsml:reuters.com:*:nL8N1381A2
The oil in storage is comparable to a month's 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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