By Meeyoung Cho
SEOUL (Reuters) - Crude oil futures edged up on light bargain hunting on Tuesday, after U.S. and Brent crude tumbled in the previous session to post their biggest daily percentage declines since the start of September.
Oil prices sank on Monday after a report that OPEC continued to boost production. A hefty drop in Chinese imports last month and expectations of higher crude stockplies in the United States helped limit any recovery.
Global benchmark Brent crude had gained 29 cents to $50.15 a barrel by 0550 GMT, after dropping $2.79 in the previous session to $49.86. U.S. crude for November rose 34 cents to $47.44 a barrel after settling down $2.53 at $47.10.
"We think that prices are likely to remain capped to the upside for the remainder of this quarter in line with our forecast due to weakening product demand, burgeoning crude and product stocks, and limited supply adjustments," Barclays (L:BARC) said.
Kuwait said on Monday there were no calls within OPEC to change its output policy and that lower output from high-cost producers could support prices in 2016, adding to signs OPEC will keep its strategy of defending market share.
OPEC sees demand for its oil in 2016 much higher than previously thought as its strategy of letting prices fall hits U.S. shale oil and other rival suppliers.
Venezuela will this month unveil a new strategy to revive oil prices, taking a page from OPEC's history books with a proposed price band to build an automatic floor for prices at $70 a barrel.
"Oil dropped the most in three weeks after OPEC reported that its members pumped the most crude in three years. U.S. crude stockpiles are also expected to rise when released later this week," ANZ said in a note on Tuesday.
A preliminary Reuters survey showed a crude stock build of 2.8 million barrels on average in the week ended Oct. 9. [EIA/S]
China's exports fell less than forecast in September. Yet imports by value tumbled for the 11th straight month, losing over 20 percent year-on-year last month due to weak commodity prices and soft local demand, which will continue to complicate Beijing's efforts to stave off deflation.
For crude oil, China's September imports rose 1.3 percent from the same month last year, customs data showed on Tuesday, thanks to weak oil prices.
Meanwhile, Iran's parliament passed a bill on Tuesday supporting the government in implementing a nuclear deal with world powers, but insisted that international inspectors would have only limited access to Iran's military sites, state news agency IRNA said.
Asian shares stepped back from two-month highs on Tuesday and commodity currencies retreated as the big fall in oil prices triggered profit-taking, although fading expectations of an imminent U.S. rate hike lent some support. [MKTS/GLOB]