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OPEC oil production drops after attacks on Saudi installations

12 October 2019

Mohammad Barkindo, leader of the exporter group, did not specify if the move would mean extending a pact to rein in production to stabilize prices, but the comments appeared to nudge the market out of pessimism over U.S. U.S. West Texas Intermediate (WTI) futures CLc1 were up 10 cents, or 0.19%, at $52.69.

Price gains were curbed by a report of rising stockpiles in the United States, now the world's biggest oil producer. U.S. President Donald Trump has proposed to increase tariffs on about $250 billion of Chinese goods to 30% from 25% on October 15 if there are no signs of progress.

Global benchmark Brent crude futures LCOc1 fell 9 cents, or 0.2%, to $58.23 a barrel by 0654 GMT.

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Prices pared gains after U.S. President Donald Trump said the assault on Syria was "a bad idea" not backed by his administration. -China trade dispute have overshadowed lower supply.

Also pressuring prices, US crude inventories grew 2.9 million barrels last week, the Energy Information Administration said, more than double analysts' expectations for an increase of 1.4 million barrels.

Both benchmarks are down more than 20% from April peaks. But with high-level trade discussions set to start later on Thursday, the South China Morning Post reported the pair had made no progress in preliminary, lower-level talks.

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While the last meetings of the Organization of the Petroleum Exporting Countries and its allies in July decided on supply for the next nine months, the next meeting in Vienna will likely take a longer view.

At least seven Asian refiners will receive the full crude volumes they requested from Saudi Arabia for November loading, a sign that Saudi production has stabilized after disruptions last month, multiple sources with knowledge of the matter said.

"Oil prices are basically left weighed down by yet another trade war anvil around the market neck", said Stephen Innes, Asia Pacific market strategist at AxiTrader.

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OPEC oil production drops after attacks on Saudi installations