Oil slips 4-month highs due to economic concerns

Oil prices tumbled on Thursday, falling after four-month highs as investors focused on the risk that emerging market crises and trade disputes would jeopardize demand, even as supply tightened.

Brent crude fell 60 cents a barrel to $ 79.14. US light crude fell $ 1.31 to $ 69.06 a barrel and was $ 69.42, down 95 cents.

"A period of profit-taking pushes the energy complex (downward) after two days of spectacular gains," said Stephen Brennock, a market analyst at PVM Oil's London broker.

The International Energy Agency said on Thursday that even as the oil market tightens and global oil demand soon reaches 100 million barrels a day, global economic risks would rise.

"Things are tightening," the agency said in its monthly report, but added: "By 2019, some emerging economies may compromise our forecasts, partly because of the dollar's depreciation against the dollar American energy imports. "

"In addition, an escalation of trade disputes may worsen growth," said the Paris-based agency.

US companies in China are being penalized by tariffs in the growing trade war between Washington and Beijing, according to a survey, prompting US lobbies to urge the administration of President Donald Trump to reconsider his approach.

The White House has urged Chinese officials to resume trade negotiations just as it prepares to intensify a trade war with China with a $ 200 billion tariff on Chinese products.

In the short term, the prospects are for a tighter supply.

Brent surpassed $ 80 a barrel Wednesday for the first time since May, spurred by hopes that US sanctions against Iranian oil exports, which will begin in November, will tighten global markets.

US light crude exceeded $ 70 due to lower US crude inventories and production levels.

The IEA said tightening supply was putting more and more pressure on prices. "The Brent price range of 70 to 80 dollars per barrel in place since April could be tested," the statement said.

US crude stocks fell 5.3 million barrels during the week to 396.2 million barrels, the lowest since February 2015 and about 3 percent from the five-year average of this year. period. Wednesday.

Crude oil production in the United States fell from 100 billion barrels per day to 10.9 million barrels per day as the sector faces pipeline capacity constraints.