Oil prices decline as traders weigh on tensions and demand in the Middle East

By Koustav Samanta

SINGAPORE (Reuters) – Oil prices fell slightly Tuesday, while the International Energy Agency (International Energy Agency) (IEA) said it would act quickly if necessary to keep the market fueled by tensions in the Middle East and that traders were considering weaker demand prospects.

Raw Brent futures slipped 2 cents to $ 63.24 a barrel by 0121 GMT. The international benchmark rose by more than 1% in the previous session, following Iran's seizure of a British oil tanker last week, which caused concern over supply disruptions in the United States. Gulf, rich in energy.

West Texas Intermediate (WTI) gross futures prices fell 6 cents, or 0.11 percent, to $ 56.16 per barrel.

The International Energy Agency (IEA) indicated that he was closely following developments in the Strait of Hormuz.

"The IEA is ready to act quickly and decisively in the event of disruption so that global markets remain adequately supplied, "he said, adding that Executive Director Fatih Birol was in talks with IEA members, badociated governments and other nations.

"Consumers can be rebadured that the oil market is currently well-supplied, with oil production surpbading demand in the first half of 2019, pushing world stocks up 900,000 barrels a day," said the president. . IEA said in a statement.

Potential disruptions in the Middle East are due to a more fundamental deterioration of the market climate in recent days. Hedge funds, producers and traders all adopt a more bearish attitude to what they see as a weakness in global demand.

"Estimation of the overall lower demand of OPEC, IEA and EIA in the last few weeks, "said Alfonso Esparza, senior market badyst at OANDA.

"The weather and geopolitical disturbances were temporary and only the OPEC+ this agreement has clearly informed traders about the group's commitment to reduce the overabundance of oil at their expense. "

Organization of Petroleum Exporting Countries (OPEC) and some unaffiliated producers, including Russia, collectively known as OPEC+, have held back supplies since the beginning of the year to support prices.

National Oil Corp. Libya lifted a major force on the cargoes of the country's biggest oilfield, Sharara, which had been closed since Friday.

At the same time, US oil production from seven major shale formations is expected to increase by about 49,000 barrels per day (bpd) in August, to a record 8.55 million bpd, announced last week. US Energy Information Administration.

(Report by Koustav Samanta, edited by Richard Pullin)