U.S. crude edges away from 2009 lows; huge storage glut means outlook remains bleak

SINGAPORE (Reuters) - U.S. oil prices edged away from 2009 lows in early trading on Thursday but overall market sentiment remained extremely bearish due to huge unused amounts of petroleum sitting idle in storage tanks and as China's economy was showing no signs of recovery.

U.S. West Texas Intermediate (WTI) futures were trading at $34.23 per barrel at 0026 GMT, up 26 cents from their last settlement but within half a dollar of 2009 lows reached on Wednesday at $33.77 per barrel.

"Data suggest gasoline and distillate fuel stockpiles increased 10.6 million barrels and 6.3 million barrels, respectively, last week. The rise in gasoline and distillate inventory more than offset the fall in crude oil inventory levels by 5.09 million barrels to (still near record) 482.3 million barrels last week," ANZ bank said.

 

The huge storage overhang means that even if U.S. production falls this year as drillers succumb to low prices, it will take many months to work down excess supplies, and with the global economy looking shaky due to China's slowdown, traders said the outlook for oil remains for cheap prices for much of this year.

(Editing by Michael Perry)