Oil prices slide as economic growth concerns tighter supplies

SINGAPORE (Reuters) – Oil prices fell on Thursday, reversing some of the strong gains recorded in the previous session as economic worries raised doubts about fuel demand growth.

The United States West Texas Intermediate (WTI) CLc1 futures were at $ 69.91 per barrel at 0220 GMT, down 46 cents or 0.6 per cent from their latest settlement.

Brent crude futures LCOc1 fell 38 cents, or 0.5%, to $ 79.36 per barrel.

The declines are due to a potential slowdown in fuel demand growth due to trade disputes between the US and China, as well as turbulence in emerging markets.

US firms in China are penalized by tariffs in the growing trade war between Washington and Beijing, according to a survey of hundreds of companies, prompting US lobbyists to ask the Trump administration to reconsider its approach.

The Trump administration has urged the Chinese authorities to resume trade negotiations, while Washington is preparing to intensify the trade war between China and the United States with a $ 200 billion tariff on Chinese products.

The Organization of the Petroleum Exporting Countries (OPEC) on Wednesday reduced its forecast for global oil demand growth in 2019, highlighting economic risks.

In its monthly report, OPEC said that global oil demand for next year would increase by 1.41 million barrels a day, 20,000 barrels less than last month and the second consecutive reduction in forecasts.

United States: drilling, production and storage of oil: tmsnrt.rs/2OKP4nJ

SUPPLY AND MORE

Despite this, the short-term outlook for the oil markets is to tighten supply.

Brent surpassed $ 80 a barrel in the previous session for the first time since May because of expectations that US sanctions against Iranian oil exports, which will begin in November, will strengthen global markets.

WTI was pushed to over $ 70 the previous session due to lower crude inventories and production levels.

US C-STK-T-EIA inventories dropped 5.3 million barrels during the week to 396.2 million barrels, the lowest since February 2015 and about 3% lower than the previous year. Average Information Administration (EIA) said Wednesday.

Stephen Innes, head of Asia-Pacific trading at Oanda futures broker in Singapore, said the inventory data showed "a much larger drop than analysts' expectations."

US C-OUT-T-EIA crude oil production fell by 100,000 b / d to 10.9 million bpd as the industry faces pipeline capacity constraints.

Innes said Thursday's slight declines were due to higher inventories of refined products, which the EIA had also reported, "slightly easing market overexplosion," indicating that US fuel demand could s & # 39; weaken.

USOILG = ECI gasoline inventories increased by 1.3 million barrels, while USOILD = ECI distillate stocks, which include diesel and fuel oil, increased by 6.2 million barrels, according to data of EIA.

Iranian oil exports to Asia: tmsnrt.rs/2CEzade