* China crude demand grows despite economic weakness
* Oil glut remains as OPEC keeps pumping crude
(Repeats to additional subscribers)
By Simon Falush
LONDON, Dec 8 (Reuters) - Crude prices steadied not far from
seven-year lows on Tuesday as China reported strong commodity
imports despite economic weakness, though global oversupply
compounded by OPEC's decision to keep output high led analysts
to predict further weakness.
Benchmark Brent and WTI futures both fell more than 6
percent the previous session to reach 2015 lows and are close to
levels last seen during the credit crunch of 2008/09.
Brent futures LCOc1 were up 54 cents at $41.27 a barrel by
1050 GMT. U.S. crude CLc1 was trading at $37.94 a barrel, up
29 cents from its last settlement, though still close to the
seven-year lows of the previous session.
"It's a dead-cat bounce. When you get a decline like you saw
yesterday, you're going to get a rebound," said Michael Hewson,
chief market analyst at CMC Markets.
"But OPEC has lost control of the oil market and unless
something fundamental changes that causes demand to overtake the
oversupply in the market, the path of least resistance is the
2008 lows of $35-$38."
On the demand side, China's appetite for cheap oil was
helping to support prices as the government looks to build up
strategic reserves.
China's crude oil imports for the first 11 months of the
year rose 8.7 percent to 6.61 million barrels per day, with
November crude imports growing 7.6 percent from the same month a
year ago.
China's November sales of new vehicles jumped 17.6 percent
over the same period.
With crude prices near record lows, China is seen as likely
to double its strategic oil purchases in 2016, adding 70-90
million barrels to its strategic petroleum reserves (SPR).
Saudi Arabia is shipping more crude oil to Asia over the
last two months of the year as strong refining margins boost
demand, trade sources said, helping the top oil exporter to
defend market share amid fierce competition.
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GRAPHIC on U.S. crude prices near 2008/2009 lows http://reut.rs/1HRJ6wU
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