UPDATE 12-Oil falls 1 pct; U.S. crude set for longest losing streak since 1984

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* U.S. crude down 22 pct from October peak, Brent down 20pct

* Iran sanctions impact dampened by broad exemptions

* U.S., Russia, Saudi crude output: https://tmsnrt.rs/2Rua0R8

* Asia gasoline margins turn negative: https://tmsnrt.rs/2PNUIcZ (New throughout, updates prices, market activity and comments, adds China data)

By Devika Krishna Kumar

NEW YORK, Nov 9 (Reuters) - Oil prices fell about 1 percenton Friday as global supply increased and investors worried thatfuel demand could slow, putting U.S. crude on track for thelongest stretch of daily declines since 1984.

Benchmark Brent crude LCOc1 fell below $70 a barrel forthe first time since early April, and was down about 20 percentsince reaching four-year highs at the beginning of October.

Brent crude LCOc1 futures fell 59 cents to $70.06 abarrel, a 0.8 percent loss by 12:20 EST (1720 GMT). It was downabout 3.7 percent for the week and more than 15 percent thisquarter.

U.S. West Texas Intermediate crude futures were on track forthe 10th straight day of declines, the longest such streak sinceJuly 1984, according to Refinitiv data.

WTI crude CLc1 futures fell 63 cents to $60.04 a barrel, a1 percent loss, after dropping under $60 a barrel to its lowestin eight months.

The U.S. crude contract had hit a low of $59.26, down $1.41and off more than 20 percent since its peak in October. That putit in "bear market" territory, borrowing a definition used instock markets.

"What a difference a month makes," said Michael Tran,commodity strategist at RBC Capital Markets.

"Market sentiment has shifted from the most bullish tone inyears with many calling for $100 only weeks ago, to the weakestinvestor sentiment since the 2016 price trough."

Demand worries followed forecasts for slower economic growthin 2019, largely due to a U.S.-China trade war. On Friday,Chinese data showed producer inflation fell for the fourthstraight month in October on cooling domestic demand andmanufacturing activity. The report sent global stocks into atailspin. urn:newsml:reuters.com:*:nL4N1XK1D2MKTS/GLOB

Oil peaked in early October on concerns that U.S. sanctionson Iran that came into force this week would drain global crudeinventories and bring shortages in some regions.

But other big producers have more than compensated for lostIranian barrels. The United States, Russia and Saudi Arabia arepumping at or near record highs, producing more than 33 millionbarrels per day (bpd), a third of the world's oil.

Also, U.S. sanctions on Iran are unlikely to cut supply asmuch as expected. Washington has granted exemptions to Iran'sbiggest buyers. urn:newsml:reuters.com:*:nL4N1XK10Q

A South Korean delegation including oil buyers is expectedto head to Iran next week to discuss resuming oil imports aftera three-month halt, sources told Reuters. urn:newsml:reuters.com:*:nL4N1XK2G1

China National Petroleum Corp said it was still taking oilfrom Iranian fields in which it has stakes. urn:newsml:reuters.com:*:nL4N1XK1NT

Washington has said it wants to force Iranian oil exportsdown to zero, but Bernstein Energy now expects "Iranian exportswill average 1.4 million to 1.5 million bpd" during theexemption period, about half the volume in mid-2018.

Inventories in Cushing, Oklahoma, the delivery point forU.S. crude futures, have risen for seven straight weeks.

"As OPEC exports continue to rise, inventories continue tobuild, which is putting downward pressure on oil prices,"Bernstein said. "A slowdown in the global economy remains thekey downside risk to oil."

Still, a return to oil production cuts by OPEC and itsallies next year cannot be ruled out, two OPEC sources said thisweek. urn:newsml:reuters.com:*:nL8N1XI4XH A ministerial committee of some OPEC membersand allies meets on Sunday in Abu Dhabi.

FACTBOX-The knowns and unknowns of U.S. Iran oil sanction
waivers    urn:newsml:reuters.com:*:nL4N1XK10Q
GRAPHIC: Russian, U.S. & Saudi crude oil production   https://tmsnrt.rs/2CTwqaq
(Reporting by Devika Krishna Kumar in New York, ChristopherJohnson in London and Henning Gloystein in Singapore; Editing byBernadette Baum) ((christopher.johnson@thomsonreuters.com; +44 7790 561 651; Reuters Messaging: christopher.johnson.reuters.com@reuters.net))

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

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