July 3, 2017 / 3:52 PM / 5 months ago

BRIEF-Blackrock's Turnill says expects to see reduction in global oil inventories in H2

July 3 (Reuters) - Blackrock’s Strategist Richard Turnill

* Global oil supply glut hasn’t eased as fast as we thought, but expect to see reduction in global oil inventories in second half

* “We now see oil prices fluctuating around current levels, in a lower range than we had expected earlier this year”

* We believe U.S. oil production could be further constrained by reduced labor supply and rising input costs

* Prefer shares of exploration and production (E&P) companies, particularly low-cost U.S. Shale producers

* Global oil demand not yet risen to offset higher supply, but see sustained above-trend economic growth to support oil demand from here

* We also like emerging market energy equities and selected debt of high-quality exploration and production companies

* Growth rate of U.S. oil production has slowed recently‍​ Further company coverage:

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