* Dollar gains as doubts weigh on U.S.-China trade deal,
Brexit
* Saudi oil output seen above pre-attack levels in Oct, Nov
* Market worries about situation along Syrian-Turkish border
* Saudi Arabia reaffirms commitment to OPEC+ supply cuts
(Updates prices, market activity and comments to settlement)
By Laila Kearney
NEW YORK, Oct 14 (Reuters) - Oil prices lost about 2% on
Monday on worries that global crude demand could stay under
pressure as few details about the first phase of a U.S.-China
trade deal did little to assure a quick resolution to the tariff
fight.
Oil prices also felt pressure as the U.S. dollar .DXY ,
which has an inverse relationship with crude prices, gained as
waning trade deal hopes and ongoing concerns over Britain's exit
from the European Union attracted safe-haven investments.
Brent crude LCOc1 settled at $59.35 a barrel, shedding
$1.16, or 1.92%, while U.S. West Texas Intermediate (WTI) crude
CLc1 settled at $53.59 a barrel, losing $1.11, or 2.03%.
"The complex is in (the) process of relinquishing a major
portion of the late week trade inspired gains as conflicting
indications out of the U.S. and China regarding trade progress
is reducing risk appetite," said Jim Ritterbusch of Ritterbusch
and Associates.
Late on Friday, Washington and Beijing outlined the first
stage of a trade deal and suspended this week's scheduled U.S.
tariff hikes. Brent and WTI rose more than 3% last week, their
first weekly increase since the week starting Sept. 20, on signs
of progress toward a trade deal that would boost crude demand.
But optimism that the trade negotiations would prove
successful faded, as China indicated further discussions were
needed and U.S. Treasury Secretary Steven Mnuchin said the next
round of tariffs on Chinese imports are still set to take effect
on Dec. 15 if a deal has not been reached by then. But existing tariffs remain in place and officials on both
sides said much more work was needed before an accord could be
agreed. A good portion of the gains last week came after the United
States announced on Friday it was deploying more troops to Saudi
Arabia, and after an Iranian oil tanker was attacked in the Red
Sea.
Oil prices had drawn some support from worries that further
escalation along the Syrian and Turkish border could affect
output or exports from Iraq. Syrian troops entered a
northeastern town on Monday.
The Saudi energy minister, Prince Abdulaziz bin Salman, said
oil exporters were showing serious commitment to global output
cuts in a deal between OPEC and its allies, a grouping known as
OPEC+. Russian Energy Minister Alexander Novak said there were no
talks underway to change the OPEC+ deal.
Kuwait's oil minister said it was too early to discuss a
possible buildup in oil inventories in 2020. Khaled al-Fadhel
said a price range of $50 to $70 per barrel would be
acceptable. The compliance of OPEC+ producers with the supply-reduction
agreement was seen at above 200% in September, sources familiar
with the matter said.
Bin Salman also said on Monday that Saudi Arabia's oil
production will recover in October and November to levels above
those seen before attacks on its energy installations in
September, which weighed on oil prices.
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GRAPHIC: Iran oil tanker hit by missiles off Saudi coast IMG
https://tmsnrt.rs/2B4p0iu
GRAPHIC: Call on OPEC crude https://tmsnrt.rs/2OCPCzd
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(Additoinal reporting by Bozorgmehr Sharafedin in London,
Florence Tan and Seng Li Peng; Editing by David Gregorio and
Lisa Shumaker)