* More upbeat Asian sentiment supports oil
* Physical oil overhang remains in place
* Mexico says it can not cut output, British production to
rise
* End of summer driving season to lower U.S. demand
(Changes dateline, previous SINGAPORE, updates throughout)
By Libby George
LONDON, Sept 9 (Reuters) - Stronger stock markets helped
stabilise crude oil prices on Wednesday yet concerns about
oversupply persisted.
Asian shares extended global stock market gains, with
markets in China stabilising and Japanese stocks posting their
biggest one-day gain since the height of the global financial
crisis in 2008.
The pan-European FTSEurofirst 300 index .FTEU3 was up more
than 2 percent in early trade. MKTS/GLOB ID:nL4N11F01S
Traders said the upbeat sentiment had flowed into oil.
"Fundamentally, the market is following the stock market,"
said Tamas Varga of PVM. "That's why the oil market is pretty
stable."
Brent crude LCOc1 was trading at $49.61 per barrel at 0908
GMT, up 9 cents from the previous evening's close, after jumping
4 percent in the last session.
U.S. West Texas Intermediate crude CLc1 was down 6 cents
to $45.88 after falling in the previous session as the end of
the U.S. summer driving season pointed to lower fuel
consumption.
Yet concerns remained that high global oil production is
butting up against weakening demand growth, especially as growth
in China slows.
"The oil market is still oversupplied," Varga added. "The
strength is going to be temporary."
Oil prices have fallen by more than 50 percent since June
2014 as a result of a global supply glut.
Prices have seesawed in recent weeks on concerns about
Chinese growth and a slide in its equity markets.
The Organization of the Petroleum Exporting Countries (OPEC)
is also producing close to record volumes to squeeze out
competition, especially from U.S. shale producers.
There was also news that Russia and Mexico would not cut
production, cooling speculation that some producers might lower
output to support prices. ID:nL1N11E1DU ID:nL4N11D0R1
On Wednesday, Britain's oil and gas industry association
also said the country's output in 2015 would rise for the first
time in 15 years reflecting investment in more efficient
technology. ID:nL5N11E2RT