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REFILE-Oil prices fall on weaker demand growth, surprise gain in US crude stocks


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REFILE-UPDATE 2-Oil prices fall on weaker demand growth, surprise gain in US crude stocks


(Refiles to remove extraneous word 'cents' in paragraph 3)

* EIA cuts 2019 global oil growth forecast by 160,000 bpd

* U.S. crude stocks unexpectedly rise last week -API

By Jane Chung

SEOUL, June 12 (Reuters) - Oil prices fell nearly 2% onWednesday, weighed down by a weaker demand outlook and a rise inU.S. crude inventories despite growing expectations of ongoingOPEC-led supply cuts.

Brent crude futures LCOc1 , the international benchmark foroil prices, were down $1.16, or 1.86%, at $61.13 a barrel by0616 GMT.

U.S. West Texas Intermediate (WTI) crude futures CLc1 weredown $1.04, or 1.95%, at $52.23 per barrel.

The U.S. Energy Information Administration (EIA) cut itsforecasts for 2019 world oil demand growth and U.S. crude oilproduction in a monthly report released on Tuesday. urn:newsml:reuters.com:*:nL2N23I0Y2urn:newsml:reuters.com:*:nAQN00RTP2

The EIA lowered its 2019 world oil demand growth forecast by160,000 barrels per day (bpd) to 1.22 million bpd and wound backits forecast for 2019 U.S. crude production to 12.32 millionbpd, 140,000 bpd less than the May forecast.

A surprise increase in U.S. crude stockpiles also kept oilprices under pressure.

"Investors have been concerned about the recent rise instockpiles in the U.S.," ANZ bank said in a note.

U.S. crude inventories rose by 4.9 million barrels in theweek ended June 7 to 482.8 million barrels, according to datafrom the American Petroleum Institute (API) on Tuesday. Thatcompared with analyst expectations for a decrease of 481,000barrels. API/S

Official data from the Energy Information Administration(EIA) is due at 10:30 a.m. EDT (1430 GMT) on Wednesday.

Alongside concerns about rising supply, ongoing tradetensions between the United States and China, the world's twobiggest oil consumers, weighed on prices. U.S. President DonaldTrump said on Tuesday he was holding up a trade deal with China. urn:newsml:reuters.com:*:nL2N23I153

"Oil prices have struggled to retain bullish gains astraders stay cautious over heightened geopolitical risks andpersistent weakness in the global economic backdrop," saidBenjamin Lu, commodities analyst at Phillips Future inSingapore.

With the next meeting of the Organization of the PetroleumExporting Countries (OPEC) set for the end of June, the marketis looking to whether the world's major oil producers prolongtheir supply cuts.

OPEC, along with non-members including Russia in a groupcalled OPEC+, have limited their oil output by 1.2 million bpdsince the start of the year to prop up prices.

Goldman Sachs said in a note that an uncertain macroeconomicoutlook and volatile oil production from Iran and others couldlead OPEC to roll over supply cuts. urn:newsml:reuters.com:*:nFWN23J02Z

"We expect such an outcome to only be modestly supportive ofprices with our third quarter Brent forecast at $65.5 perbarrel," Goldman added.

The Energy Minister for the United Arab Emirates Suhail binMohammed al-Mazroui said on Tuesday that OPEC members were closeto reaching an agreement on continuing production cuts. urn:newsml:reuters.com:*:nL2N23I1U8

OPEC is set to meet on June 25, followed by talks with itsallies led by Russia on June 26. But Russia suggested a datechange to July 3 to 4, sources within the group previously toldReuters. (Reporting by Jane Chung; Editing by Richard Pullin and JosephRadford) ((jane.chung@thomsonreuters.com; +82 2 3704 5667; ReutersMessaging: jane.chung.thomsonreuters.com@reuters.net))






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



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