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UPDATE 3-Oil extends losses on oversupply, China economy concerns persist

Published 14/10/2015, 06:11 pm
UPDATE 3-Oil extends losses on oversupply, China economy concerns persist
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* IEA sees global oil supply glut through 2016

* U.S. shale output seen to fall the most on record in Nov

* OPEC invites some non-OPEC members for Oct 21 meeting (Adds more details and updates prices)

By Meeyoung Cho

SEOUL, Oct 14 (Reuters) - Crude oil futures fell on Wednesday, extending two days of losses and rattled by concerns about oversupply and slowing demand, with China's economic growth likely to fall below 7 percent in the third quarter.

Crude futures rose 15 percent in early October but have since fallen back by almost 10 percent as global production continues to outpace demand and concerns over China's slowing economy prevail.

Front-month Brent LCOc1 for November delivery was down 19 cents or 0.4 percent at $49.05 a barrel as of 0708 GMT after it ended down 1.2 percent, or 62 cents, at $49.24 a barrel on Tuesday.

U.S. crude CLc1 lost 12 cents, or 0.3 percent, to $46.54 a barrel after settling 0.9 percent, or 44 cents, lower at $46.66 a barrel.

On Wednesday, data from China which showed consumer inflation had eased more than expected in September while producer prices fell for a 43rd straight month, adding to concerns over growing deflationary pressures in the world's second-largest economy. urn:newsml:reuters.com:*:nZZN02KKAE

China's economic growth is expected to fall below 7 percent for the first time since the global financial crisis in the third quarter. urn:newsml:reuters.com:*:nL3N12C29L

"Prices should remain low ... the main reason for that is because global supply and demand for crude did not change much over the past few weeks or even months. We are still in oversupply," Daniel Ang, an investment analyst at Phillip Futures Pte Ltd.

"Considering that you know we are looking for possible worsening oversupply coming from Iran ... this puts the whole situation a lot more bearish."

A global oil supply glut will persist through 2016 as demand growth slows from a five-year high and key OPEC members maintain near-record output, said the International Energy Agency, even as low prices curb supply outside the producer group. urn:newsml:reuters.com:*:nL8N12D17P

U.S. shale production is expected to fall the most on record in November, extending a nationwide output decline into its seventh consecutive month, according to a forecast from the U.S. Energy Information Administration. urn:newsml:reuters.com:*:nL1N12D1PI

The number of North Dakota oil wells that have been drilled but not fracked rose to an all-time high in August of almost 1,000, as producers delayed bringing them online as long as possible. ID:nL1N12D1AI

Global offshore oil production in ageing fields will also fall by 10 percent next year as producers abandon field upgrades at the fastest rate in 30 years, data shows. urn:newsml:reuters.com:*:nL8N129161

As the oil market remains over supplied, Saudi Arabia failed to attract offers for additional oil cargoes for loading in October, industry sources said. urn:newsml:reuters.com:*:nL3N12D2BH

Venezuelan Oil Minister Eulogio del Pino said on Tuesday that eight non-OPEC countries have been invited to an Oct. 21 technical meeting of oil experts from the Organization of Petroleum Exporting Countries and non-OPEC countries in Vienna. urn:newsml:reuters.com:*:nL1N12D1SV

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