U.S. crude edges up, but remains near 12-year lows on China worries

SEOUL (Reuters) - U.S. crude futures inched up early on Friday but remained near 12-year lows as financial market unrest in China rattled investors already concerned about a world glut in oil.

U.S. crude West Texas Intermediate (WTI) was trading 12 cents higher at $33.39 a barrel by 0028 GMT after settling at $33.27 on Thursday. In the last session, it hit its lowest since late 2003 at $32.10.

Brent settled down 48 cents at $33.75 in the previous session, after sliding to a low of $32.16, a level last seen in April 2004.

"Oil remains under pressure amid concerns about China's economy and yuan depreciation," ANZ said in a note on Friday.

 

"With rising Middle East tensions now a distant memory, oil is likely to test the $30 a barrel level amid growing concerns on the impact of a weakening yuan on Chinese demand."

Shares on major exchanges fell for a sixth straight day on Thursday as investors fretted over the state of China's economy and its ability to stabilize its stock market.

(Reporting by Meeyoung Cho; Editing by Joseph Radford)