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Crude oil prices edge up; but oversupply, strong dollar drag

Published 06/11/2015, 12:42 pm
Updated 06/11/2015, 12:49 pm
© Reuters.  Crude oil prices edge up; but oversupply, strong dollar drag
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By Henning Gloystein

Singapore, Nov 6 (Reuters) - Crude oil prices edged up on Friday after falling over 2 percent the previous session, with analysts saying oversupply and a strong dollar would continue to weigh on fuel markets.

U.S. crude futures CLc1 were trading at $45.37 a barrel at 0129 GMT, up 17 cents from their last settlement, while Brent crude LCOc1 rose 14 cents to $48.12 a barrel. The slight increases came after drops the previous day on the back of climbing U.S. crude inventories. urn:newsml:reuters.com:*:nL3N13018I

Analysts said that oversupply would pressure oil markets.

"We have seen few signs recently indicating a change of tack in the oil markets," said French investment bank Natixis.

"Oil prices will remain under pressure as long as the surplus remains in the market," the bank added, referring to global production being 1-2 million barrels per day above demand.

The strong U.S. dollar is also seen as a drag on commodity markets as it makes imports for countries with other currencies more expensive.

The greenback has gained almost 5 percent against a basket of other leading currencies .DXY since early October as markets expect the U.S. Federal Reserve to be the first major central bank to raise interest rates since the global financial crisis of 2008/2009.

"Rising speculation that the Fed will raise rates will put further downward pressure on commodity prices," ANZ Bank said on Friday.

DATA/EVENTS

* The following data is expected on Friday (GMT):

0700 Germany Industrial output Sep

0745 France

Trade data

Sep

1330 U.S.

Nonfarm payrolls

Oct

1330 U.S.

Unemployment rate Oct

2000 U.S.

Consumer credit

Sep

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