Oil slips from four-month highs on economic concerns

Oil slips from four-month highs on economic concerns

U.S. West Texas Intermediate (WTI) crude futures were at $69.88 per barrel at 0635 GMT, down 49 cents, or 0.7 percent, from their last settlement.

The IEA also said that higher output from OPEC managed to more than offset seasonal declines from non-OPEC members.

According to the Organization for Economic Cooperation and Development (OECD), weaker demand in Europe, Asia, as well as higher gas prices in the US, put some downward pressure on the pace of demand growth, while shakiness in emerging markets over trade disputes and weakened currencies pose a risk to demand outlook for 2019.

Light, sweet crude for October delivery dropped $1.78, or 2.5%, to $68.59 a barrel on the New York Mercantile Exchange, its worst day since August 15 after it closed at its highest level since July 20 a session earlier.

The storm could also affect the Colonial Pipeline, which transports oil through North and SC with the latter said to be in the direct path of the storm's eye.

Oil traded below $70 a barrel as investors assessed whether other Organization of the Petroleum Exporting Countries (Opec) members can fill the supply gap created by United States sanctions on Iran and economic collapse in Venezuela.

Oil held steady near its highest level this year on Wednesday as investors weighed the impact of the Iran sanctions.

Novak said global oil markets were "fragile" due to geopolitical risk and supply disruptions.

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Gasoline futures jumped 5.5 cents to settle at $2.0142 a gallon on the New York Mercantile Exchange.

The EIA's most recent monthly export data shows the US exported 3.609 million barrels of ethanol in June, primarily to Brazil, Canada and India.

The Iran supply cut may also be more than compensated for by production increases outside OPEC.

US crude production fell by 100,000 bpd to 10.9 million bpd last week as the industry faces pipeline capacity constraints.

Despite all indications that the global market is well supplied with oil that can be sustained at the will of top producers, analysts continue to forecast an overall tightening in the near term; but given projections supplied by the Organization of the Petroleum Exporting Countries (OPEC) on Wednesday, the question is, will slowing demand render these tightening fears moot?

While Iran's liquefied petroleum gas (LPG) exports in August jumped to the highest in almost two years, mostly thanks to China which imposed tariffs on U.S. LPG, Tehran lost customers in East Africa-Kenya and Tanzania have stopped importing LPG from Iran due to the sanctions, according to Platts tracking data and sources.

"Hence, world oil demand growth is now pegged at 1.62 Mmbpd for 2018, with total global consumption at 98.82 Mmbpd", it said.

Iraq, OPEC's 2d-greatest producer which noticed method-file production in August at four.65 million bpd, is at the moment witnessing violent protests in and round Basra, which hosts the bulk of its oil production facilities and its greatest deepwater port. Demonstrators receive blocked roads and threatened to close down oil facilities in boom in opposition to failed speak products and providers, unemployment and political corruption.

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