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MTECHTIPS:-Oil eases further below $50 on oversupply, China concern

MTECHTIPS:-Oil eases further below $50 on oversupply, China concern

Oil eased further below $50 a barrel on Wednesday, falling for a third day, on concern a supply glut will persist and demand slow down as economic growth moderates in No. 2 consumer China. Chinese growth for the third quarter is expected to fall below 7 percent for the first time since the global financial crisis. The International Energy Agency (IEA) said on Tuesday the oil market would remain oversupplied in 2016. Brent crude was down 8 cents at $49.16 a barrel as of 1114 GMT (0714 EDT). U.S. crude was up 3 cents at $46.69. “Prices should remain low,” said Daniel Ang, an investment analyst at Phillip Futures. “We are still in oversupply.” The IEA forecast on Tuesday that oil demand growth would slow next year and a potential increase in supply from Iran would counter slowing output from the United States and other countries outside OPEC, keeping the market oversupplied. [IEA/M] The Organization of the Petroleum Exporting Countries in 2014 dropped its longstanding policy of supporting prices by cutting output, choosing instead to defend market share against higher-cost producers such as U.S. shale oil. In a sign the strategy is working, a forecast from the U.S. Energy Information Administration sees U.S. shale production falling by the most on record in November, extending a nationwide output decline into a seventh month.

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