Weak economic outlook and oversupply weigh on oil markets

SINGAPORE, Sept 8 (Reuters) - U.S. oil prices fell on
Tuesday as the global economic outlook darkened further and
cooperation between oil producing countries to curb oversupply
looked unlikely, pulling U.S. crude prices down around three
percent in early Asian trading.
Japan's economy shrank an annualised 1.2 percent in
April-June, revised gross domestic product (GDP) data showed on
Tuesday, despite ongoing government and central bank measures to
support growth.
Asian shares looked set to struggle on Tuesday to defend the
three-year trough hit last month as investors sought more signs
of stability in China's slowing economy and volatile financial
markets.
"Oil prices are now expected to stay around current levels
until the end of 2015, before rising to the mid to high 50s by
the end of 2016," National Australia Bank said in its September
commodities note to clients.
U.S. crude benchmarks CLc1 were down over 3 percent from
their previous close at 0025 GMT at $44.66 per barrel, and
although Brent futures LCOc1 firmed 40 cents in early trading
to $48.03 a barrel, the global benchmark was still down $1.24
from its opening value on Monday.
Oil prices have fallen almost 60 percent since June 2014 on
a global supply glut, with prices seesawing in recent weeks as
concerns about a slowing Chinese economy caused turmoil in
global stock markets.
On the supply side, recent speculation that Russia might be
willing to cooperate with the Organization of the Petroleum
Exporting Countries (OPEC) to curb output in support of prices
were given a blow on Monday after the chief executive of Russian
oil major Rosneft ruled out a Russian cut.
OPEC is producing close to record volumes to squeeze out
competition, especially from U.S. shale producers, which have so
far weathered the price plunges to keep pumping oil.