CORRECTED-Oil stutters at over 4-month low on rising U.S. supply, demand fears

(Corrects paragraph 5 to say U.S. crude output hit 12.4 million
bpd, not 124.4 million bpd)
* U.S. crude oil output hits record 12.4 million bpd- EIA
* U.S. crude inventories at highest since July 2017- EIA
* Economic growth to stall to 10-year low - Morgan Stanley
* U.S. crude output & storage surge: https://tmsnrt.rs/2DwTUBQ

By Henning Gloystein
SINGAPORE, June 6 (Reuters) - Oil prices on Thursday hovered
around their lowest levels since January as markets remain under
pressure from rising U.S. supply and stalling demand amid an
economic slowdown.
Front-month Brent crude futures LCOc1 , the international
benchmark for oil prices, were at $60.50 at 0108 GMT. That was
13 cents, or 0.2%, below last session's close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
at $51.62 per barrel, 6 cents, or 0.1%, below their last
settlement.
Brent and WTI on Wednesday hit their lowest levels since
January, at $59.45 and $50.60 per barrel respectively, amid a
surge in U.S. crude inventories and record production, and as a
global economic slowdown was starting to hit energy demand.
U.S. crude oil production C-OUT-T-EIA rose to a record
12.4 million barrels per day (bpd) in the week to May 31, the
Energy Information Administration (EIA) said on Wednesday, an
increase of 1.63 million bpd since May 2018.
Amid surging output, U.S. commercial crude oil inventories
surged by 6.8 million in week to May 31, to 483.26 million
barrels, their highest levels since July 2017. "Rising U.S. production is more than offsetting the efforts
from the OPEC+ and if we add the negative effect a trade war
could have on energy demand the result is lower prices," said
Alfonso Esparza, senior analyst at futures brokerage OANDA.
The Middle East-dominated producer club of the Organization
of the Petroleum Exporting Countries (OPEC) as well as some
non-affiliated producers including Russia, known as OPEC+, have
been withholding oil supply since the start of the year to prop
up the market. With supply ample despite the OPEC-led cuts, much will
depend on demand.
Global economic growth took a dip late last year but started
to recover in early 2019, but analysts now warn that growth is
threatened again.
"Recent data suggests the nascent recovery has stalled amid
trade tensions and a double dip is likely," Morgan Stanley said.
The U.S. bank said it expected this downturn to lead to "the
lowest growth rate since global financial crisis" of 2008/2009.
"We see trade tensions spilling over via direct linkages
such as trade, commodities and tourism, and indirect linkages
such as tighter financial conditions weakening private sector
sentiment and spending," Morgan Stanley said.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC: U.S. oil drilling, production & storage levels https://tmsnrt.rs/2DxgF8W
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>