Oil prices hold above US$43 level in Asia

Data from the US Department of Energy showed that US oil supplies rose by 1.0 million barrels for the week ending November 20.

U.S. West Texas Intermediate (WTI) futures CLc1 fell 37 cents to $42.50 a barrel, having gained $1.12 to $42.87 on Tuesday. And in November, an EIA report said OPEC oil production is estimated to have grown by 900,000 barrels per day in 2015 while non-OPEC production has grown by 1.1 million barrels per day over the same period.

“Inventory overhangs dominate the oil markets and will likely suppress oil prices in the near term, as we approach [the December] OPEC meeting in Vienna”, said Jason Gammel, analyst at Jefferies. Distillate production averaged over 5 million barrels a day last week, down slightly compared with the prior week’s production.

Oil prices held above $43 a barrel in Asia today after USA commercial crude supplies rose at a slower pace, while jitters lingered over the shooting down by Turkey of a Russian warplane. “There is also some optimism relating to the potential for Chinese infrastructure projects in the new year”, John Meyer, mining analyst at SP Angel, said.

The situation is expected to worsen when Iran pledged to start exporting oil again shortly after the economic sanctions by western countries have been lifted post nuclear agreement with the United States.

Oil rebounded in NY after failing to drop below $40 a barrel as France dropped bombs on Syria, heightening tensions in Europe and the Middle East in the wake of deadly terrorist attacks in Paris.

Brent North Sea crude for January delivery was down 71 USA cents at $45.46 at 0530 Friday AEDT.

Oil prices have fallen as focus turns back to an oversupply of the market from political tensions in the Middle East.

Exxon Mobil Corp. (NYSE: XOM) traded up less than 0.1%, at $81.82 in a 52-week range of $66.55 to $95.33. South Korea’s Kospi .KS11 lost 0.2 percent and Hong Kong’s Hang Seng .HSI dropped 0.5 percent.

A gain in the dollar, which rose to an eight month high against a basket of currencies .DXY , also weighed on prices as oil, priced in the USA unit, became less affordable to holders of other currencies.

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