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Oil edges up despite IEA report showing demand growth at decade low


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UPDATE 3-Oil edges up despite IEA report showing demand growth at decade low


* IEA lowers demand growth forecasts for 2019, 2020

* Supply curbs by OPEC and allies help support market

* Concerns over U.S.-China trade war cap gains

* Saudi to keep exports below 7 mln bbls in Aug, Sept-official (Updates, adds IEA report, comments, changes dateline fromSeoul)

By Bozorgmehr Sharafedin

LONDON, Aug 9 (Reuters) - Oil prices inched higher on Fridaysupported by expectations of more OPEC production cuts despitethe International Energy Agency (IEA) reporting demand growth atits lowest level since the financial crisis of 2008.

Brent crude futures LCOc1 were at $57.80 a barrel by 0854GMT, up 42 cents from their previous settlement.

West Texas Intermediate (WTI) CLc1 futures were at $52.80per barrel, up 26 cents.

"Despite a further cut in oil demand growth by the IEA, oilprices are trading marginally higher, as the demand growth cutwas already announced previously by the head of the IEA and theagency still expects larger inventory draws for 2H19," UBSanalyst Giovanni Staunovo said.

The IEA said global oil demand in the first half of 2019grew at its slowest pace since 2008 hurt by mounting signs of aneconomic slowdown and a ramping up of the U.S.-China trade war. urn:newsml:reuters.com:*:nL8N2551RB

Oil prices have lost more than 20% from peaks reached inApril, putting them in bear territory.

Rystad Energy said the oil market was going "from gloomy togloomier", calling into question the consultancy's own bullishview for the first part of 2020.

"Economic recession risk and further escalation of theU.S.-China trade war are key concerns in the near term. How longOPEC+ is willing to continue to manage production addsuncertainty," said Bjørnar Tonhaugen, head of oil marketanalysis at Rystad Energy.

The Organization of the Petroleum Exporting Countries,Russia and other producers, an alliance known as OPEC+, agreedin July to extend their supply cuts until March 2020 to boostoil prices.

Saudi Arabia, de facto leader of the OPEC, plans to maintainits crude oil exports below 7 million barrels per day in Augustand September to bring the market back to balance and helpabsorb global oil inventories, a Saudi oil official said onWednesday. urn:newsml:reuters.com:*:nL8N25451J

"Market focus in oil has clearly shifted. It is squarely onfuture demand, rather than on supply," said HarryTchilinguirian, global oil strategist at BNP Paribas in London.

The United Arab Emirates also will continue to supportactions to balance the oil market, energy minister Suhailal-Mazrouei said in a tweet on Thursday. urn:newsml:reuters.com:*:nL8N2547I9

The minister said the OPEC and non-OPEC ministerialmonitoring committee would meet in Abu Dhabi on Sept. 12 toreview the oil market.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global oil demand growth   https://tmsnrt.rs/2YFYbzGOPEC and non-OPEC supply   https://tmsnrt.rs/2MPdnD7
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(Additional reporting by Jane Chung in Seoul; editing by JasonNeely) ((bozorgmehr.sharafedin@thomsonreuters.com;))






This article appears in: Stocks , World Markets , Oil , Commodities



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