Oil Traders Look to Floating Storage as Onshore Tanks Fil

The world is so awash with crude, the boss of BP Plc said people will be filling their “swimming pools” with it by the end of the year.

While the company’s Chief Executive Officer Bob Dudley bemoaned this bearish outlook for oil, traders were eyeing a potentially profitable opportunity: turning supertankers into temporary floating storage facilities.

Trading houses including Vitol Group, Koch Supply & Trading LP and Glencore Plc, plus the in-house trading arms of BP and Royal Dutch Shell Plc, collectively made billions of dollars from 2008 to 2009 stockpiling crude at sea.

At the peak of the floating storage spree, sheltered anchorages in the North Sea, the Persian Gulf, the Singapore Strait and off South Africa each hosted dozens of supertankers.

Chris Bake, a senior executive at Vitol, the world’s largest independent oil trader, gave the clearest indication yet this week that traders are considering the same strategy again.

Floating storage is profitable when the market reaches a condition traders call a “super-contango.” In a contango market, prices of oil for delivery today are lower than those in future months. Buyers with access to storage can fill up their tanks with cheap crude and sell higher-priced futures contracts to lock in a profit

Shell Fourth-Quarter Profit Drops 44% as Crude Prices Tumble

Royal Dutch Shell Plc, which is on the brink of completing the oil industry’s largest deal in a decade, said fourth-quarter profit fell 44 percent after the rout in crude prices deepened.

Profit adjusted for one-time items and inventory changes shrank to $1.8 billion, near the midpoint of the preliminary $1.6 billion-to-$1.9 billion range it gave last month, Shell said Thursday.

That matches the $1.8 billion average estimate of 14 analysts surveyed by Bloomberg, and compares with profit of $3.3 billion a year earlier.

Crude’s collapse has slashed earnings for oil companies from Exxon Mobil Corp. to BP Plc, leaving them struggling to strike a balance between investing for growth and making shareholder payouts.

The Hague-based Shell is betting its $50 billion acquisition of BG Group Plc will help it maintain dividends and increase oil and gas production at a time when cash flow is shrinking.

“BG now becomes important for Shell because it helps them grow and high-grade their assets,” Brendan Warn, a London-based analyst at BMO Capital Markets, said by phone. “It gives Shell the opportunity to divest their high-cost assets and focus on BG’s high-margin projects.”

Oil slump rocks markets again in equity rout

World stocks sank to their lowest levels since 2013 on Wednesday, hit by another tumble in oil to 13-year lows that kept global equities set for one of their worst monthly performances ever.

The MSCI World equity index fell 1.3 percent to its lowest level since July 2013, and the index's fall so far in January is already 9.9 percent, the biggest drop since 2009.

There have been steeper monthly drops only six times in the index's 28-year history, three of which occurred during the financial crisis of 2008/2009

"I am quite pessimistic about the equity markets for the next two to three months. I do not see a 2008-style scenario, but I do see a bear market coming," said Andreas Clenow, hedge fund trader and principal at ACIES Asset Management, suggesting a further 10 percent fall to come.

U.S. crude wallowed at its lowest since 2003 after the world's energy watchdog warned the market could "drown in oversupply". U.S. futures shed 2.9 percent to $27.63 while Brent crude lost 2.1 percent, having slipped below $28 earlier in the session.

European shares touched their lowest level since October 2014, following losses in U.S and Asian stock markets as the relentless slump in oil prices continued to drag on risk assets.
The FTSEurofirst 300 fell 2.8 percent, set for its biggest single session loss of an already turbulent 2016.

Germany's DAX, France's CAC and Britain's FTSE were all down around 3 percent and also set for their biggest fall of the year so far.

Oil shares in Europe are down 13 percent already this year, also at their lowest levels since 2003. That has been a major weight on the FTSEurofirst 300, which is down around 10 percent in 2016, which investors see as "correction" territory.

U.S. stock futures were down 1.8 percent on Wednesday ahead of the open, after Wall Street had seen its early gains on Tuesday erased by the tumble in U.S. crude.

World stocks rise as slowing China growth boosts stimulus prospects

Shares in Europe and Asia rose and the dollar gained after data showing China's economy grew last year at its slowest pace in 25 years prompted investors to anticipate more efforts to spur growth.

Styrofoam bull and pig figure stand on a counter on the trading floor at the stock exchange in Frankfurt, Germany January 7, 2016.

Oil prices rose after strong Chinese fuel demand halted a slide to 2003 lows triggered by the lifting of sanctions on Iran, while metals prices rose.

Concerns about Chinese authorities' ability to rebalance the slowing economy have rattled investors this year after a plunge in stock markets and the yuan currency raised concerns growth may be slowing more rapidly.

China's economy grew 6.9 percent last year, and 6.8 percent year-on-year in the fourth quarter, down from 6.9 percent in the third and the weakest pace since the first quarter of 2009, data showed.

Quarter-on-quarter, growth slipped to 1.6 percent in the last three months of 2015 from 1.8 percent in the third.

In a sign of slower growth to come, other data showed retail sales, industrial output and fixed-asset investment last month all came in below the expectations of analysts polled by Reuters.

European shares opened higher, led by miners after metals prices rose following the Chinese data.

The pan-European FTSEurofirst 300 index rose 1.5 percent. The STOXX Europe 600 Basic Resources index, which includes miners, added 4.1 percent.

The dollar gained against the safe-haven Japanese yen in anticipation of further action by Beijing, possibly as soon as next month.

The U.S. currency gained 0.4 percent 117.76 yen while the euro fell 0.1 percent to $1.0887. The Australian dollar, whose fortunes are closely linked to China, a major market for Australia, rose 0.6 percent to $0.603.

Oil falls to 11-year low, Saudi-Iran row seen making output restraint unlikely

Oil fell to its lowest in more than 11 years on Wednesday, down around 2 percent, as the row between Saudi Arabia and Iran was seen extinguishing any chance of major producers cooperating to cut production in the face of mounting global over supply.

The furor over Saudi Arabia's execution of a Shi'ite cleric has depressed the market as it put an end to speculation that OPEC members could agree on production cuts to lift prices.

Global Brent crude benchmarks were at $35.75 a barrel at 0856 GMT (3.56 a.m. ET), down 67 cents or 1.9 percent from their previous settlement, their lowest since 2004.

U.S. crude futures were down 46 cents at $35.51 per barrel after already slipping 79 cents the previous day.

Oil has slumped from above $115 in June 2014 as shale oil from the United States has flooded the market, while falling prices have prompted some producers to maximize output to prevent income falling too rapidly and keep market share.

Adding to this oversupply, Iranian oil exports are widely expected to increase in 2016 as Western sanctions against the country for its alleged nuclear weapons program are likely to be lifted.

Still, a senior Iranian oil official said the country could moderate oil export increases once the sanctions are lifted to avoid putting prices under further pressure.

In the United States, concerns over mounting stock levels persisted, with crude inventories likely to have risen by 439,000 barrels last week, according to a Reuters poll of eight analysts.

U.S. crude briefly rises to premium over Brent as exports loom

U.S. crude prices briefly rose to a premium over internationally traded Brent on Wednesday following a report of a surprise dip in U.S. inventories and the potential for more exports in an oil market which still suffers from ballooning oversupply.

Front-month U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading at $36.38 per barrel at 0340 GMT, up 24 cents from their last settlement.

Brent crude earlier traded as low as $36.28 a barrel, briefly flipping WTI from a long-standing discount into a slight premium over the international benchmark for the first time since a short period in November 2014.

Brent edged back to $36.44 by 0340 GMT. Except for November last year, WTI has traded at a discount to Brent since 2010.

Spreads for contracts delivered further into 2016 CL-LCO8=R CL-LCO3=R have already seen a WTI premium over Brent for much of December.

Prior to 2010, WTI was usually at a premium to Brent as the U.S. shale oil boom had yet to kick off, meaning that the world's biggest oil consumer had higher crude and fuel imports.

U.S. petroleum imports have fallen from a peak of almost 14 million barrels per day (bpd) to around 9 million bpd, according to government data.

But as shale output dips and the government lifts a decades-old crude export ban, the U.S. market could tighten while supplies globally keep ballooning on the back of soaring output from Russia and the Organization of the Petroleum Exporting Countries (OPEC).

Crude inventories fell by 3.6 million barrels in the week to 486.7 million, compared with analysts' expectations for a increase of 1.1 million barrels.

Brent crude oil falls to 2004 low as market rout heads into Christmas

Brent crude prices fell to levels last seen in 2004 on Monday, dropping below the lows hit during the 2008 financial crisis on renewed worries over an oil glut. 

Stacked rigs are seen along with other idled oil drilling equipment at a depot in Dickinson, North Dakota June 26, 2015.

Global production remains at or near record highs and new supply looms from the Iran and the United States. Crude markets are also under pressure following last week's U.S. interest rate hikes and on signs of growing U.S. stockpiles even as more drilling rigs are deployed.

Brent futures fell almost 2 percent and as low as $36.17 per barrel on Monday, the weakest since 2004 and below the $36.20 low reached on Christmas Eve 2008 before edging back to $36.42 at 0620 GMT. Prices are still down 46 cents from their last settlement.

U.S. West Texas Intermediate (WTI) futures were down 24 cents at $34.49 per barrel and close to last Friday's 2015 lows.

Both benchmarks have fallen more than two-thirds since mid-2014 when the rout began.
An unexpected gain in the U.S. oil rig count - by 17 to 541 - and the strength in the U.S. dollar following last week's interest rate hike, which makes oil more expensive for countries using different currencies, all weighed on crude prices, said analysts.

The U.S. glut adds to global oversupply as the main producers, including Russia and the Organization of the Petroleum Exporting Countries (OPEC), pump hundreds of thousands of barrels of crude every day in excess of demand.

Russian production has surpassed 10 million barrels per day (bpd), the highest since the collapse of the Soviet Union, while OPEC output also remains near record levels above 31.5 million bpd. OPEC leader Saudi Arabia upped production from 10.226 to 10.276 million bpd between September and October.

Iraq's oil minister Adel Abdul Mahdi told Reuters over the weekend that OPEC would stick to its Dec. 4 decision to not limit production despite the drop in prices.

More oil becoming available soon will add to the glut, with Iran hoping to ramp up sales in early 2016 once sanctions against Tehran are lifted.

Oil heads for third weekly loss after new signs of inventory building

Crude futures were mixed in Asian trading on Friday as fresh signs of inventory building and the Fed's rate hike this week kept prices under pressure amid a global glut of oil that shows no sign of abating, prompting traders to buy more put options.

U.S. crude's West Texas Intermediate (WTI) futures CLc1 were down 9 cents at $34.86 a barrel by 0731 GMT (2.31 a.m. ET). Brent LCOc1 was up 12 cents at $37.18 a barrel.

Both contracts are on track to post a third week of losses, with U.S. crude down 2.2 percent and Brent off by 2 percent.

Sandu said the bears won't be satisfied till they test lows reached during the global financial crisis of $32.40 for WTI and $36.20 for Brent in December 2008.

"That's the first target the bears are gunning for," Sandu said. "I think they will test those and once they hit them, see whether they can press below $30 for WTI.

Traders are preparing for even lower crude prices next year, taking up increasing amounts of put options to sell U.S. crude in February should prices fall to $30, $25 or even $20 per barrel, according to Reuters data.

From February, the northern hemisphere peak heating demand season starts coming to an end, leading to lower energy and fuel demand in spring and summer.

At the same time, many expect Iran crude exports to fully return to the market during the first quarter of 2016 if or when sanctions against Tehran are lifted.

Crude oil holds at seven-year lows as global glut persists

Crude oil prices remained at levels not seen since early 2009 on Friday as output in the Middle East continued to rise despite an already huge global glut, with analysts saying the price outlook for the rest of the year and into 2016 remained weak.

Brent crude futures were down 29 cents at $39.44 a barrel at 0551 GMT, a touch above a near-seven-year low hit earlier in the session at $39.38 a barrel.

U.S. crude futures were at $36.52 per barrel, down 24 cents and just above Thursday's bottom of $36.38 - the benchmark's lowest mark since February 2009.

"The next quarter is going to be particularly tough as we go from a high-demand to a low-demand quarter," said Richard Gorry, director of consultancy JBC Energy Asia.

Gorry said he expected a slow rebalancing of the market towards the end of next year, with production remaining stubbornly high despite low benchmark prices.

The price rout is a result of a huge overhang in production that is fast filling onshore storage sites, which some analysts expect to run out in early 2016.

ANZ bank said on Friday that "crude oil markets will remain subdued in 2016, though prospects for a recovery look better in the second half of the year."

Soaring output from OPEC member Iraq has been a large contributor to that overhang, with production there doubling over the past decade to around 4.3 million barrels per day, more than enough to meet all of India's daily demand.

OPEC as a whole pumped more oil in November than in any month since 2008 despite forecasting little demand growth for crude next year in a bid to defend market share.

Oil prices drop on China data, firmer dollar

Crude oil futures fell on Friday with losses this month standing at around 9 percent, hurt by disappointing Chinese economic data and worries over a supply glut.

A firmer U.S. dollar also weighed on oil, making greenback-denominated contracts more expensive for holders of other currencies, although trading was quiet after Thanksgiving Day in the United States.

Brent crude had dropped 29 cents to $45.17 per barrel by 0720 GMT, after settling down 71 cents at $45.46 in the previous session.

West Texas Intermediate (WTI) futures, the U.S. crude benchmark, fell 71 cents, or 1.65 percent, to $42.33 per barrel. They are up 4.8 percent so far this week, but have plunged 9.1 percent since the beginning of the month.

Profits earned by Chinese industrial companies fell 4.6 percent in October from a year earlier, data from the country's statistics bureau showed on Friday, declining for the fifth consecutive month.

ANZ said in a note on Friday that "U.S. stocks data did little to excite the market", referring to numbers from the Energy Information Administration on Wednesday which showed U.S. crude inventories rose 1 million barrels last week, slightly below analyst expectations.

The market is shifting its focus to a meeting of ministers from the Organization of the Petroleum Exporting Countries, which is set for Vienna on Dec. 4.

Oil tumbles as strong dollar, oversupply weigh on investors

Oil prices fell on Monday, dented by the rise in the U.S. dollar to seven-month highs, and analysts see more losses triggered by the mismatch between global supply and demand.

The fall was part of a wider decline in commodities that has also been stoked by worries over faltering demand from China, with prices for base metals such as copper and nickel tumbling. However, speculators have turned increasingly negative on crude.

U.S. West Texas Intermediate (WTI) crude futures CLc1 fell $1.26 a barrel to $40.64 a barrel by 0418 ET. The contract broke below $40 on Friday for the first time since August. Benchmark January Brent futures LCOc1 were last down 90 cents at $43.76 a barrel.

The U.S. Federal Reserve is widely expected to deliver its first rate rise in almost a decade when it meets next month, while the European Central Bank looks almost certain to continue to ease monetary policy.

A stronger dollar .DXY tends to make it more profitable for non-U.S. investors to sell their dollar-denominated commodity holdings. [FRX/]

Oil prices have halved over the last 12 months after OPEC decided to maintain its production levels, or even increase them, to retain market share, in part by forcing higher-cost producers elsewhere to cut output.

Oil markets were keeping an eye on developing geopolitical tensions in the Middle East as Jordan's King Abdullah will hold talks with Russian President Vladimir Putin on how to tackle "terror groups" led by Islamic State in Syria, an official source said.

Oil edges lower to near three-month lows on surplus supply

Oil futures gave up early gains to trade near three-month lows on Friday on a persistent supply glut that has cut prices by up to 13 percent since the start of November.

A gas pump is seen hanging from the ceiling at a petrol station in Seoul June 27, 2011.

U.S. crude West Texas Intermediate (WTI) dipped 11 cents to $40.43 a barrel as of 0731 GMT, after edging up in earlier trades. It ended down 21 cents at $40.54 on Thursday, after dipping to $39.89 during the previous session, its lowest since Aug. 27.

Front-month Brent futures for January lost 6 cents to $44.12 a barrel, after finishing up just 4 cents on Thursday at $44.18.

Crude futures have already lost around 60 percent of their value since mid-2014 as supply exceeds demand by roughly 0.7 million to 2.5 million barrels per day to create a glut that analysts say will last well into 2016.

Market data suggests that oil traders are preparing for another downturn in prices by March 2016, as what is expected to be an unusually warm winter dents demand just as Iran's resurgent crude exports hit global markets after sanctions are ended.

ANZ bank said on Friday: "The weakness in the front end of the curve has pushed the market to deep contango again."

The bank noted the spread between near-month futures and December 2016 contract prices has hit a new record of nearly $8 a barrel.

Oil Stocks - Oil prices Edged Up

Oil prices edge up on reports of falling inventories, but glut remains in place

Oil prices edged up on Wednesday following reports of falling stockpiles and rising refinery activity, but analysts said the market would remain under pressure for the rest of the year and into 2016.

Industry group American Petroleum Institute (API) said on Tuesday that U.S. crude stockpiles fell last week by 482,000 barrels due partly to higher refinery runs.

This helped push front-month U.S. crude futures CLc1 up 29 cents from their last settlement to $40.96 a barrel at 0552 GMT. The gain followed an over $1 fall the previous session.

Official inventory data is due later on Wednesday from the U.S. government's Energy Information Administration (EIA). Internationally traded Brent crude futures LCOc1 were up 35 cents at $43.92 per barrel.

Despite the slight gains on Wednesday, most analysts expect prices to remain at low levels for the rest of the year and into 2016 as production continues to outpace demand.

"Oil market sentiment has turned back to 'max bearish' mode. Talk of $20 oil is back," consultancy Energy Aspects said in a note this week.

At the core of the bearish sentiment is that every day between 0.7-2.5 million barrels of oil per day are being produced in excess of demand, leading to a glut that is testing the logistics of oil markets.

Onshore inventories across the world are on the brink of being full, a condition known as tank-top, while offshore tanker storage requires prices on the far end of the curve to be higher than prompt deliveries in order to warrant storage.

Oil prices give up early gains as crude, product glut persists

Oil prices dipped away from early gains on Tuesday as the risk premium following the Paris attacks and the French air strikes in Syria faded, and traders began to focus on the global oversupply in crude and petroleum products again.

Oil rigs and platforms are seen at Maracaibo's lake near the western city of Maracaibo January 2, 2008.

Analysts said that despite the Paris attacks and French retaliation against Islamic State (IS) in Syria, prices would remain low for the rest of the year and into 2016 as oil markets stay oversupplied, with 2015 production outpacing demand by 700,000 to 2.5 million barrels per day, according to estimates.

Front-month U.S. crude futures CLc1 initially rose towards $42 per barrel but then dipped back to $41.62 a barrel by 0745 GMT, down 12 cents from its last settlement.

Internationally traded Brent crude futures LCOc1 rose towards $44.80 before dropping back to $44.59 a barrel.

"The well-supplied crude market, record high inventories in OECD and lack of a material threat to the oil facilities in the Middle East from the military escalation against IS in Syria are going to prevent geopolitical premiums building in oil prices," BMI Research said.

On the supply side, ANZ bank said that U.S. shale oil production, which many analysts said would fall sharply as a result of lower oil prices, would only dip.

Oil prices edge away from two-month low, but outlook stays weak

Oil prices edged away from over two-month lows on Thursday, but the outlook remains bleak as traders ditch positions and producers hedge themselves against lower prices despite some analysts saying market oversupply may have been overstated.

U.S. crude futures CLc1 were at $43.16 a barrel at 0714 GMT, up 23 cents from Wednesday when prices tumbled 3 percent on the back of high production, rising U.S. stocks and an economic slowdown in Asia.

Brent crude futures LCOc1 were at $45.97 a barrel, up 16 cents following a 3.4-percent fall the previous day.

Trading data showed there seemed to be shift in sentiment towards a lower oil price outlook, with 90,000 contracts having been sold down this month, pulling open interest off a historic high as traders sell out of oil.

At the same time, oil producers have hiked their short positions in Brent futures to record highs of almost 1.3 million in a sign that they are increasingly hedging their production in expectation of lower prices.

Beyond high production and brimming storage tanks, sentiment has also been hit by a growing sense that Asia's two biggest economies were slowing sharply after China's factory output growth eased further.

The slowdown in China has pulled down the entire commodity sector, with products like crude, copper, liquefied natural gas, coal and iron ore all down between 20 and 30 percent this year, on a re-based basis valued at 100 points on January 1.

Adding to demand worries are fears that Japan's economy may have fallen into recession and that emerging markets across the world are struggling with a soaring debt mountain that threatens growth.

Oil Stock Market News - Crude Oil Prices Fell

Oil prices drop on rising stockpiles, slowing Asian economies

Crude oil prices fell on Wednesday after industry data showed an increase in U.S. stockpiles, while China's factory output slowed and fears emerged that Japan's economy may have fallen into recession added to demand woes.

Benchmark U.S. crude futures slipped to a two-week low at $43.55 a barrel in early trading before edging back up to $43.72 a barrel by 0652 GMT, still down almost half a dollar from their last close.

Internationally traded Brent crude futures were down 29 cents at $47.15 a barrel. The price drops came on the back of rising stockpiles in North America and slowing economies in Asia.

U.S. crude stocks jumped by 6.3 million barrels in the week to Nov. 6 to 486.1 million barrels, data from industry group the American Petroleum Institute showed late on Tuesday, compared with analyst expectations for an increase of 1 million barrels.

China's oil demand rose 0.9 percent in October from a year earlier to 10.14 million barrels per day (bpd), according to Reuters' calculations based on preliminary government data, with many analysts expecting a further slowdown.

The oil market is also looking for any indicators from the Organization of the Petroleum Exporting Countries (OPEC) over its production policy.

Oil Stock Market News- Oil Prices Rose

Crude oil rises after OPEC says market to be balanced in 2016

Oil prices rose on Tuesday after the head of OPEC forecast a more balanced market next year and the U.S. energy department said domestic output is likely to fall further, though gains were limited as the overall picture of a market in glut remains.

U.S. crude rose 28 cents to $44.06 a barrel by 0409 GMT, after falling about 1 percent on Monday to $44.15 for a fourth consecutive decline.

Brent crude, the global benchmark, was up 21 cents at $47.40 a barrel. The contract slipped 0.5 percent on Monday to $47.19 a barrel, also falling for four trading days in a row.

Oil is trending a little higher in the Asian period but still very much under pressure, said Ben le Brun, market analyst at OptionsXpress.

Further evidence of stockpiling, expectations of a hike in U.S. rates and anemic economic growth figures have helped push down prices in the last week.

Still, the comments from OPEC Secretary-General Abdullah al-Badri on Monday did provide a little bullish relief to the market.

Most of the oil supply increases in recent years have come from high-cost production, Badri said, in a reference to supply sources such as U.S. shale oil.

Oil Stock Market News - Brent Crude Futures

Brent regains ground after slide, but dollar weighs

A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015.

Brent crude futures edged up on Monday, recovering from a three-day decline, but a firm dollar after robust U.S. employment data fueled bets for an interest rate hike before the year is over kept a lid on prices.

The dollar held near its loftiest in almost seven months versus a basket of currencies after U.S. nonfarm payrolls jumped 271,000 in October, far exceeding the 180,000 increase that economists polled by Reuters had predicted.

The dollar's strength is likely to extend ahead of a likely rate increase by the Federal Reserve in December, and could be a key drag on prices of oil and other commodities, said Ben Le Brun, market analyst at OptionsXpress in Sydney.

A stronger greenback makes dollar-priced assets more costly for buyers using other currencies. Brent crude for December delivery was up 40 cents at $47.82 a barrel by 0407 GMT, after falling more than 1 percent on Friday.

December U.S. crude gained 37 cents to $44.66 a barrel after touching a 1-1/2-week low of $43.83.

Hedge funds raised their bullish wagers on U.S. crude last week by the most in six months, data showed on Friday, as speculators bought into oil contracts in forward months on the bet market fundamentals will take time to improve.

Weekend data from China, the world's No.2 oil consumer, showed the country's crude oil imports fell 5.7 percent from the previous month to 26.35 million tonnes in October.

But while China's crude imports dropped to 6.2 million barrels per day (bpd) from 6.8 million bpd from September, the volume was still up 9.4 percent from a year ago and 8.9 percent higher in January-October.

Oil Stock News - Crude Oil Futures

Crude oil prices remain under pressure from oversupply

Crude oil futures were pressured on Tuesday by oversupply and worries the dollar will strengthen when the U.S. Federal Reserve eventually raises interest rates.

Benchmark U.S. crude futures CLc1 were trading at $46.17 per barrel at 0628 GMT (1.28 a.m. ET), up just 3 cents from their last settlement after falling in the previous session due to a rise in stockpiles.

Internationally traded Brent LCOc1 dropped 8 cents to $48.71, down 8 cents from its last close, under pressure from Russian production hitting a post-Soviet peak while China's demand outlook weakened.

"Crude continues to remain under pressure due to emerging supply-side news and slowing Chinese demand. Russian oil output broke a post-Soviet record in October for the fourth time this year. News from Iran is also painting a negative picture," ANZ bank said in a morning note.

Meanwhile, Gulf oil producers are delaying some field maintenance until next year to keep production high and reduce costs as they forecast ongoing low oil prices in 2016.

An expected dip in U.S. oil production as a result of low prices is unlikely to be enough to significantly reduce a glut, which is seen remaining at over 1 million barrel per day on average for 2015.

U.S. crude oil stockpiles likely rose by 2.7 million barrels last week, growing for a sixth consecutive week as supply outstrips demand, a Reuters poll showed. Industry group the American Petroleum Institute (API) will issue its preliminary inventory data on Tuesday before official numbers on Wednesday from the U.S. government.

Oil Stock Market News - Crude Oil Futures

Crude oil on track for weekly gain despite glut

Crude futures held steady around $49 in early Friday trading, poised to post the first weekly gain in three weeks despite a supply glut that has tested storage capacity and hammered company results.

The potential gain, driven by smaller-than-expected builds in U.S. oil stocks, was widely viewed as a temporary boost in a market that is awash with oil and staring down sluggish economic growth in key markets such as the United States and China.

Brent crude traded 10 cents higher at $48.90 a barrel at 0940 GMT, set for a nearly 2 percent weekly increase. U.S. crude was down 10 cents at $45.96 a barrel, on track to post a gain of nearly 3 percent on the week.

Traders said a rally earlier in the week sparked by a 3.4-million-barrel crude build reported by the U.S. Energy Information Administration provided the sole support for the weekly increase. [EIA/S]

But bearish data quickly followed, tempering the gains. U.S. economic growth braked sharply in the third quarter as businesses cut back on restocking warehouses to work off an inventory glut. Weak home sales soured the mood further.

China's Ministry of Commerce announced on Friday a doubling in the country's crude oil import quota for 2016, but concerns about shaky growth in the world's largest energy consumer lingered.

Oil executives, smarting from a 50 percent slide in prices since last year, saw little relief. Oil companies reported a dramatic drop in third-quarter income, with some falling to a loss, and said the pressure could persist through 2016.