* Middle East producers stick to keeping output high
* OPEC sees only slight annual oil price rises by 2020
By Henning Gloystein
SINGAPORE, Sept 18 (Reuters) - Oil prices dipped early on
Friday on fresh signs the Middle East will continue to
prioritise market share over prices, while the United States
kept interest rates at historic lows on worries over the health
of the global economy.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
trading at $46.70 per barrel at 0049 GMT, down 20 cents from
their last settlement. Brent prices were little changed at
$49.14 per barrel.
Kuwait, a key producer of the Organization of the Petroleum
Exporting Countries (OPEC), said on Thursday that the oil market
would balance itself but that this would take time, indicating
support for the producer group's policy of defending market
share despite falling prices. ID:nL5N11N20S
This view was confirmed by sources at OPEC who said they
expected oil prices to rise by no more than $5 a barrel a year
to reach $80 by 2020, with a slowing in rival non-OPEC
production growth not enough to absorb the current oil glut.
The lower prices came despite the U.S. Fed keeping interest
rates at historic lows.
Analysts have suggested a weaker dollar would provide some
support to crude prices, as it makes dollar-traded crude cheaper
for countries using other currencies.
"With the Fed on hold and a weaker USD, support should
return to commodity markets," ANZ bank said.
Some traders disagreed. "It's the Fed's thinking behind
holding rates that spooked us more than the impact of a weaker
dollar. They kept rates low because they worry about the health
of the global economy. That makes me worry about global oil
demand," said one crude trader.
(Editing by Richard Pullin)