Global oil consumption to top 100m bpd in next 3 months: IEA

Global oil consumption to top 100m bpd in next 3 months: IEA

Oil traded below $70 a barrel as investors assessed the outlook for an oil supply shortage with Iran sanctions set to kick in against whether Opec can fill in the gap by raising output.

Oil prices fell on Thursday after rallying over the week to skirt the $80 per barrel mark. The sanctions will target Iran's oil exports from November.

"There remains a lot of noise in this week's markets, but the confluence of bullish near-term signals such as Iran sanctions, sinking USA crude inventories and Mideast tensions should keep oil prices supported for the remainder of the week", said Stephen Innes, head of trading for Asia Pacific at Oanda.

Weaker quiz in Organization for Economic Cooperation and Pattern (OECD) individuals in Europe and Asia, as effectively as higher gas prices within the USA, place some downward stress on the tempo of quiz yelp, while shakiness in emerging markets over alternate disputes and weakened currencies pose a risk to quiz outlook for 2019.

Demand for oil grew more slowly in the second quarter but will continue to rise this year and in 2019, the group said.

Also supporting prices were supply concerns surrounding US sanctions on Iran.

USA light crude settled down $1.78, or 2.5 per cent, at $68.59 a barrel.

Brent crude futures were last down 23 cents on the day at $78.83 a barrel by 3pm, having touched a session peak of $79.66, the highest since late May, when the price broke above $80.

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

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Asian consumers of oil have begun to reduce purchases of Iranian oil and South Korea has reduced its imports Iranian crude to zero, on direct orders of the White House.

Russian energy minister Alexander Novak on Wednesday warned of the impact of USA sanctions against Iran.

Gasoline stocks rose by 1.3 million barrels, slightly below analysts' expectations.

It did not change its forecast that worldwide demand will rise 1.4 million barrels a day this year and 1.5 million a day in 2019.

"This is huge uncertainty on the market - how the countries, which buy nearly 2 million barrels per day of Iranian oil will act".

Demand for crude from the Organization of the Petroleum Exporting Countries will moderate in 2019 to 31.9 million bpd, from an estimated 32.3 million bpd this year, the IEA said.

Output from OPEC member Iran in August hit its lowest level since July 2016, the IEA said, "as more buyers distanced themselves from Tehran ahead of looming USA sanctions", the report said.

A Chinese trade delegation is due in Washington this week to resolve the dispute, but U.S. President Donald Trump told Reuters in an interview on Monday he does not expect much progress, and that resolving the trade dispute with China will "take time".

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