* Oil market tightens but trade disputes could dent demand -IEA
* U.S. industry starts to feel pain of trade tariffs -survey
* U.S. crude stocks, output drop:
* U.S. surpasses Russia, Saudi Arabia as top crude producer -EIA
(Updates prices with settle; adds news of Secretary Perry's Moscow visit)
By Ayenat Mersie
NEW YORK, Sept 13 (Reuters) - Oil prices fell more than 2 percent
on Thursday, with Brent slipping back from four-month highs as
investors focused on the risk that emerging market crises and trade
disputes could dent demand even as supply tightens.
The International Energy Agency warned that although the oil
market was tightening at the moment and world oil demand would reach
100 million barrels per day (bpd) in the next three months, global
economic risks were mounting.
"As we move into 2019, a possible risk to our forecast lies
in some key emerging economies, partly due to currency depreciations
versus the U.S. dollar, raising the cost of imported energy," the
"In addition, there is a risk to growth from an escalation of
trade disputes," the Paris-based agency said.
Brent crude oil fell $1.56, or 2 percent, to settle at $78.18
per barrel. The global benchmark on Wednesday hit $80.13, its highest
level since May 22.
U.S. light crude settled down $1.78, or 2.5 percent, at $68.59
Both benchmarks marked their biggest single day percentage drop in
almost one month.
The market tumbled early in the session as investors focused on
the bearish elements of the IEA report, said Bob Yawger, director of
energy futures at Mizuho in New York.
Prices slipped again after U.S. President Donald Trump said in a
tweet that the United States was under no pressure to make a trade
deal with China, Yawger said.
U.S. companies in China are being hurt by mounting trade tensions
between Washington and Beijing, according to a survey, prompting U.S.
business lobbies to urge the Trump administration to reconsider its
The White House has invited Chinese officials to restart trade
talks as it prepares to escalate a trade war with China with tariffs
on $200 billion worth of Chinese goods.
U.S. Energy Secretary Rick Perry praised members of the
Organization of the Petroleum Exporting Countries and Russia for their
work in preventing a spike in oil prices during a visit to Moscow.
Oil prices were up on the week, buoyed in earlier sessions by a
larger-than-expected draw in U.S. crude inventories, weakness in the
U.S. dollar and a reported fall in U.S. production, Commerzbank said
in a note.
U.S. crude production fell by 100,000 bpd to 10.9 million bpd
last week as the industry faces pipeline capacity constraints.
Though weekly output slipped, the United States likely surpassed
Russia and Saudi Arabia earlier this year to become the world's
largest crude oil producer, based on preliminary estimates from the
Energy Information Administration.
Although the EIA does not publish crude production forecasts for
Russia and Saudi Arabia in its short term outlook, it expects that
U.S. output will continue to exceed Russian and Saudi production for
the remaining months of 2018 and through 2019.
GRAPHIC: Iran oil exports to Asia GRAPHIC: U.S. oil production
growth is stalling
(Reporting by Ayenat Mersie Additional reporting by Christopher
Johnson in London and Henning Gloystein in Singapore; Editing by
Marguerita Choy and Leslie Adler)
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