NYMEX crude rebounds slightly in Asia after sharp overnight drop

Investing.com - Crude oil eased higher in Asia on Friday ina rebound from sharp drops overnight as ample global supplies weigh on the market.

On the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in December traded at $74.35 a barrel, up 0.09%, after hitting an overnight session low of $74.97 a barrel and off a high of $77.16 a barrel.

Brent, the global benchmark, lost 3.1%, to settle at $77.92 a barrel on ICE Futures Europe, the lowest level since Sept. 9, 2010.

The Brent contract for December delivery expired at settlement Thursday. The more-actively traded January contract fell 4.5%, to $77.49 a barrel.

Overnight, crude futures plunged to three-year lows on Thursday on news that Chinese industrial output missed expectations, which stoked concerns the world's second-largest consumer of oil may be battling increasing headwinds.

Factory activity in China grew slower last month when markets were expecting an uptick, official data showed on Thursday.

The National Bureau of Statistics of China reported earlier that Chinese industrial production fell to 7.7% in October from 8.0% in the preceding month.

Analysts had expected growth to remain unchanged at 8.0%, and the disappointing figure exacerbated growing concerns that supply far outstrips demand.

Elsewhere, expectations that OPEC countries will not cut output to relieve a global supply glut pressured prices lower as well.

Oil ministers from Saudi Arabia and Kuwait have resisted calls to lower production, while Libya, Venezuela and Ecuador have asked for action to prevent further price declines.

The 12-member oil cartel is scheduled to meet in Vienna on Nov. 27 to discuss whether to adjust their production target for 2015.

Saudi Arabia has expressed a willingness to let prices slide on the presumed expectations that U.S. shale producers will halt operations as a result, as such production costs more than traditional drilling.

Once U.S. shale producers table their operations for profitability reason, prices would presumably rise as the global economy absorbs excess supply.