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Oil up in Asia, but oversupply, weak demand weigh

Record high stocks of fuel oil in Singapore are pushing traders to store the shipping and feedstock fuel into tankers temporarily as demand slows regionally.

[SINGAPORE] Oil prices rebounded in Asia Monday but analysts said they remain weighed by a crude oversupply and fresh worries about the world economy after the Federal Reserve decided last week against raising interest rates.

US benchmark West Texas Intermediate for October, which expires on Tuesday, rose 15 cents to US$44.83 and Brent crude for November was up 10 cents at US$47.57 a barrel in late-morning trade.

Oil stockpiles held by Saudi Arabia, the world's biggest crude exporter, climbed to a record, Bloomberg News reported.

It said the country's commercial petroleum stockpiles advanced to 320 million barrels, the highest since at least 2002, citing data on Sunday on the website of the Riyadh-based Joint Organisations Data Initiative.

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Fresh worries have also emerged about the health of the global economy and its impact on oil demand after the Fed, the US central bank, held off raising benchmark interest rates last week.

Fed chief Janet Yellen said that bank policymakers cited the ongoing slowdown in China and recent turmoil on world markets as playing a role in the decision.

"Indeed, the Fed's hesitancy only appears to have reinforced investors' worries about the global economy, rather than reassure them," Capital Economics said in a commentary.