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: