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Oil prices edge down as traders weigh slowing demand against supply curbs

Published 08/13/2019, 09:23 AM
Updated 08/13/2019, 09:30 AM
Oil prices edge down as traders weigh slowing demand against supply curbs
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By Roslan Khasawneh
SINGAPORE, Aug 13 (Reuters) - Oil prices edged lower on
Tuesday, offsetting narrow gains in the previous session, on the
expectation major producers would continue to reduce global
supplies due to a slowing economic growth outlook.
International benchmark Brent crude futures LCOc1 were
down 11 cents or 0.2%, from the previous settlement, to $58.46 a
barrel by 0108 GMT.
U.S. West Texas Intermediate (WTI) CLc1 futures were
$54.81 per barrel, down 12 cents, or 0.2%, from the last close.
Saudi Arabia, the de-facto Organization of the Petroleum
Exporting Countries (OPEC) leader, opened its books as part of
plans to launch what could be the world's largest initial public
offering. The financials released by Saudi Aramco showed "capital
spending had been curbed by 12%, maybe suggesting that supply
growth is likely to remain tight," said ANZ bank in a note on
Tuesday. "This is likely to take some focus away from the
weakening outlook for demand."
Kuwait on Monday reiterated its commitment to OPEC+ supply
curbs after Oil Minister Khaled al-Fadhel said Kuwait had cut
its own output by more than required by the accord. The Organization of the Petroleum Exporting Countries and
its allies, known as OPEC+, have agreed to cut 1.2 million
barrels per day (bpd) since Jan. 1.
But booming U.S. shale oil production continues to chip away
at the groups efforts to limit the global supply overhang.
U.S. oil output from seven major shale formations is
expected to rise by 85,000 barrels per day (bpd) in September,
to a record 8.77 million bpd, the U.S. Energy Information
Administration forecast in a report. Gloomy forecasts for the global economy and oil demand
growth have weighed on oil prices as the trade dispute between
the United States and China escalates.

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