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EIA data show US crude stocks rose more than expected last

week

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Private reports suggest US labor market weakened in

October

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Gunvor withdraws proposal to buy Lukoil's overseas assets

By Florence Tan

SINGAPORE, Nov 7 (Reuters) -

Oil edged up on Friday following three days of declines on

worries about excess supply and slowing demand in the U.S.,

though prices appeared to be headed for a second week of losses.

Brent crude futures rose 21 cents, or 0.33%, to

$63.59 a barrel at 0149 GMT. U.S. West Texas Intermediate crude

was at $59.65 a barrel, up 22 cents, or 0.37%.

Brent and WTI are set to fall about 2% this week, down

for a second straight week, as major global producers increase

output.

The price drop is driven by a surprise 5.2

million-barrel U.S. inventory build that reignited oversupply

fears, IG Markets analyst Tony Sycamore said.

"This has been amplified by risk-aversion flows, bolstering

the dollar and the ongoing U.S. government shutdown, which

continues to cloud economic activity," he added.

U.S. crude stocks rose more than expected on higher imports

and reduced refining activity, while gasoline and distillate

inventories declined, the Energy Information Administration said

on Wednesday.

Oil prices were also pressured by concerns about the

effects of the longest government shutdown in the history of the

U.S. on the broader economy.

The Trump administration has ordered flight reductions at

major airports due to a shortage of air traffic controllers,

while private reports are pointing to a weaker U.S. labor market

in October.

Sycamore said WTI prices are settled in a $58 to $62 per

barrel range in the near term.

"A potential upside catalyst is the U.S. government

reopening within a week, though persistent builds and soft

demand will limit the rally," he added.

The Organisation of the Petroleum Exporting Countries and

its allies, also known as OPEC+, decided on Sunday to increase

output slightly in December. However, the group also paused

further increases for the first quarter of next year, wary of a

supply glut.

After OPEC+'s decision, Saudi Arabia - the world's top

exporter -

sharply reduced

prices for its crude for Asian buyers in December, in

response to a well-supplied market.

European and U.S. sanctions on Russia and Iran are also

disrupting supplies to the world's largest importers, China and

India, providing some support for global markets.

On Thursday, Swiss commodity trader Gunvor said it had

withdrawn its proposal to buy foreign assets of Russian energy

company Lukoil after the U.S. Treasury called it

Russia's "puppet" and signaled Washington opposed the deal.