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News ID: 56136
Publish Date : 10 August 2018 - 21:30

Oil Dips on Trade Dispute, Iran Sanctions Tighten Outlook



LONDON (Reuters) - Oil prices fell on Friday on worries that global trade disputes will slow economic growth and demand for fuel, but losses were limited by U.S. sanctions against Iran which look set to tighten supply.
Benchmark Brent crude oil was down 50 cents a barrel at $71.57 by 0725 GMT. U.S. light crude was 40 cents lower at $66.41 a barrel.
Escalating trade tensions are casting a shadow over the outlook for economic growth and pushing up the dollar, the currency in which oil is traded internationally, making it more expensive for consumers using other currencies.
Major emerging economies including China, India and Turkey have all seen their currencies slump.
Analysts expect Iranian crude exports to fall by between 500,000 and 1.3 million barrels per day, with buyers in Japan, South Korea and India already dialling back orders.
The total reduction will depend on whether major buyers of Iranian oil in Asia receive sanctions waivers that would still allow some imports.
It is not clear whether China, the biggest buyer of Iranian crude, will bow to U.S. pressure.