UPDATE 14-Oil up on Iran sanctions but set for weekly decline


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    * Iran sanctions expected to squeeze oil supplies
    * U.S. gasoline demand seen slowing in autumn
    * Trade war boosts dollar, hits energy demand outlook
    * U.S. drillers add most rigs since May -Baker Hughes

 (Adds CFTC data, recasts fourth and fifth paragraph)
    By Jessica Resnick-Ault
    NEW YORK, Aug 10 (Reuters) - Crude oil prices rose more than
1.0 percent on Friday as U.S. sanctions against Iran looked set
to tighten supply, but futures contracts posted a weekly decline
as investors worried that global trade disputes could slow
economic growth and hurt demand for energy.
    Benchmark Brent crude oil  LCOc1  settled 74 cents higher at
$72.96 a barrel on Friday. U.S. light crude  CLc1  was 82 cents
higher at $67.63 a barrel. 
    A sell-off on Wednesday left both benchmarks down for the
week overall, with Brent off 0.5 percent and U.S. crude 1.2
percent lower. 
    Hedge funds and other money managers cut their bullish
positions on U.S. crude in the week ending Aug. 7 to the lowest
level since June, data showed on Friday.  urn:newsml:reuters.com:*:nL1N1V11LD
    Prices are expected to remain under pressure as U.S.
gasoline demand slows going into the autumn and refiners shut
for maintenance, pushing more crude into storage, said Tariq
Zahir, managing member at Tyche Capital in New York.
    "I think it now comes down to the point of what we see in
demand numbers." 
    U.S. crude supplies fell less than expected in the latest
week, and data released on Friday showed U.S. energy companies
this week added the most oil rigs since May.
    Drillers added 10 oil rigs in the week to Aug. 10, bringing
the total to 869, the most since March 2015, General Electric
Co's  GE.N  Baker Hughes energy services firm said on Friday.
    Escalating trade disputes between the U.S, China and other
countries have dimmed the outlook for economic growth and
boosted the U.S. dollar, making oil more expensive for consumers
using other currencies.  urn:newsml:reuters.com:*:nL5N1V10BI
    Currencies of major emerging economies including China,
India and Turkey have slumped.  urn:newsml:reuters.com:*:nL5N1V10E3  urn:newsml:reuters.com:*:nL4N1U1437
    Despite these worries, prices got a boost from U.S.
sanctions against Iran, which from November will affect oil
exports from that country.
    Although the European Union, China and India oppose the U.S.
 sanctions against Iran, many are expected to bow to U.S.
    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 dialing back orders. 
    The reduction will depend on whether buyers of Iranian oil
receive waivers that would allow some imports.  urn:newsml:reuters.com:*:nL4N1UZ3CH
    The International Energy Agency said on Friday the oil
market could see more turbulence.  urn:newsml:reuters.com:*:nL9N1IL039
    "The recent cooling down of the market, with short-term
supply tensions easing, currently lower prices, and lower demand
growth might not last," the IEA said in a monthly report.
    "As oil sanctions against Iran take effect, perhaps in
combination with production problems elsewhere, maintaining
global supply might be very challenging."
    Investors are wary of the trade dispute between Washington
and Beijing.
    In the latest round of levies, China said it would impose
additional tariffs of 25 percent on $16 billion worth of U.S.
imports.  urn:newsml:reuters.com:*:nL4N1UZ5G5
    Although crude oil was removed from the list, replaced by
refined products and liquefied petroleum gas, analysts say
Chinese imports of U.S. crude will fall significantly.

 (Additional Reporting by Christopher Johnson in London and
Henning Gloystein in Singapore; Editing by Dale Hudson and David
 ((Jessica.Resnick-Ault@thomsonreuters.com; 646-223-6052;))

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