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Oil edges up on lower US rig count, weaker dollar

A Reuters survey estimated that US crude stockpiles had increased by 2.8 million barrels on average in the week ended October 9.

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Data from oil services company Baker Hughes on Friday showed USA energy firms cut oil rigs for a sixth week in a row last week in a sign low prices are keeping drillers away from the well pad.

Oil prices have halved in the past year, with global benchmark Brent crude down from over $100 a barrel in July 2014 to trade at $50.63 yesterday.

In the United States, U.S. Federal Reserve Vice Chairman Stanley Fischer said low crude oil prices have translated to increased purchasing power for consumers.

“OPEC oil ministers and speculative bulls alike can support market sentiment with happy talk of a market that seems to have bottomed, but we see the prospect of another 12 months of rising inventories as an ongoing downside risk for prices”, Evans said. Last week crude oil rose to its highest since August, near USD51.

OPEC forecast on Monday that demand for its oil in 2016 would be much higher than previously thought as its strategy of letting prices fall hits US shale oil and other rival supplies, reducing a global surplus.

However, Badri also admitted that the “market remains oversupplied”, and insisted that stability is paramount to the crude market which faced “extremely challenging times”.

The price of Crude Oil came under pressure overnight, sold hard throughout the session after secondary sources cited in OPEC’s monthly report stated huge supply increases despite the forecast slowdown in demand, notably from China.

The September data was also likely boosted by delayed shipments, as the deadly blast at the Tianjin port in August resulted in cargoes being sent back to Singapore, he said. Producers hoping the oil price will recover could be disappointed.

Record output from Iraq pushed supplies from the Organization of Petroleum Exporting Countries higher in September, according to the report.

Market participants are watching to see if Saudi Arabia and Russian Federation, the biggest non-OPEC producer, will meet later this month to discuss the oil market, as a few reports have indicated, said Stuart Ive, a client manager at OM Financial.

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The U.S. Energy Information Administration is expected to release its weekly analysis on Thursday.

OPEC chief confident of a balanced oil market in 2016