By Henning Gloystein
SINGAPORE (Reuters) - Oil prices edged up in early Asian trading on Tuesday following a sharp 5 percent drop in the previous session, as high global production and a weakening economic outlook, especially in Asia, prompted analysts to warn of further falls.
Oil output by the Organization of the Petroleum Exporting Countries (OPEC) reached the highest monthly level in recent history in July, and production could rise further if Iran achieves a plan to raise output by 500,000 barrels per day (bpd) as soon as sanctions are lifted.
With U.S. production also near records and China's economy showing further signs of slowing, prices on Monday were pulled down to within a few dollars of the six-year lows touched at the start of the year. Brent
Although prices rose on Tuesday, with Brent 28 cents higher at $49.80 a barrel by 0336 GMT (11:36 p.m. EDT) and U.S. crude
BMI Research said a strong U.S. dollar, China's weakening economy, the prospect of rising Iranian oil exports would keep downward pressure on prices in the coming months.
"A retest of Brent crude's 2015 low around $45 per barrel looks inevitable given current ample market supply and intensifying bearish market sentiment toward prices," the firm said, although it added that it expected modestly higher prices in 2016 as prices above $60 a barrel were needed for most U.S. shale oil drillers to be profitable.
(Editing by Ed Davies and Himani Sarkar)
