Oil prices edge up on hopes OPEC+ maintains supply curbs

* OPEC+ compliance rate in Oct seen at 101% - sources
* Libya output tops 1.2 million bpd - source
* U.S. oil, gas rig count highest since May - Baker Hughes

By Florence Tan
SINGAPORE, Nov 16 (Reuters) - Oil prices edged up in early
Asian trade on Monday, recouping some losses from the previous
session as hopes that OPEC+ will continue to curb output offset
concerns of weaker fuel demand amid rising COVID-19 cases and
higher production from Libya.
Brent crude futures for January LCOc1 rose 27 cents, or
0.6%, to $43.05 a barrel by 0043 GMT while U.S. West Texas
Intermediate crude for December CLc1 was at $40.48 a barrel,
up 35 cents, or 0.9%.
Both contracts gained more than 8% last week on hopes of a
COVID-19 vaccine and that the Organization of the Petroleum
Exporting Countries (OPEC) and their allies including Russia
will maintain lower output next year to support prices.
The group, also known as OPEC+, has been cutting production
by about 7.7 million barrels per day, with a compliance rate
seen at 101% in October, and had planned to increase output by 2
million bpd from January.
OPEC+ is due to hold a ministerial committee meeting on
Tuesday which could recommend changes to production quotas when
all the ministers meet on Nov. 30 and Dec. 1. However, the speedy recovery of oil production in Libya, an
OPEC member, back to above 1.2 million bpd presents a challenge
to OPEC+ cuts while a slowdown in traffic across Europe and the
United States dampened fuel demand recovery hopes this winter.
"European motorway traffic is down almost 50% in recent
weeks in some countries (such as France) as lockdown measures
are increased," ANZ analysts said.
People movement on highways in the United States was also
slowing based on vehicle mileage data despite authorities'
reluctance to implement new restrictions, they added.
While fuel demand is slowing, Baker Hughes' data showed that
U.S. oil and natural gas rig count rose last week to their
highest since May as producers, spurred by higher crude prices,
return to the wellpad. ANZ analysts expect the oil surplus to increase to between
1.5 million and 3 million bpd in the first half next year with a
vaccine only boosting demand in the second half.