Oil near 2-month low despite Saudi comment on market balance

TOKYO, July 11 (Reuters) - Crude prices edged down in early
Asian trade on Monday to hold near two-month lows on seasonally
weak consumption, despite comments from the Saudi Arabian oil
minister that the oil market was becoming more balanced.
London Brent crude for September delivery LCOc1 was down
22 cents at $46.54 a barrel by 2247 GMT on Sunday. It settled up
36 cents on Friday after the U.S. economy posted the largest job
gains in eight months in June and on worries about fresh
militant attacks on Nigerian oil infrastructure.

NYMEX crude for August delivery CLc1 was down 27 cents at
$45.14 a barrel, after closing up 27 cents on Friday.
Saudi Arabia's energy minister Khalid al-Falih said on
Sunday the oil market was becoming more balanced and prices were
stabilising, echoing earlier comments made on Monday.

Oversupply concerns, however, resurfaced on Friday with data
showing the U.S. oil rig count rose by 10 as drillers added rigs
for a fifth week in six as analysts predict production will
start to edge up early next year. RIG/U
Renewed fighting erupted in South Sudan's capital on Sunday
and forces loyal to Vice President Riek Machar said his
residence was attacked by the president's troops, raising fears
of a slide back into full-blown conflict in the five-year-old
nation.
Chinese consumer inflation last month held below the
official target of around 3 percent for this year, data released
on Sunday showed, indicating persistently weak domestic demand.

Oil's big rebound in the first half of the year was a
squandered opportunity for most hedge funds with positions in
crude, and a surge in volatility is likely to make it harder for
them to call the market in the second half.
Money managers cut their net long U.S. crude futures and
options positions to the smallest levels since March in the week
to July 5, the U.S. Commodity Futures Trading Commission (CFTC)
said on Friday.