* Brent crude price falls to lowest since July 2013
* OPEC output hits five-month high in July -IEA
* No supply disruption yet from Iraq, Ukraine conflicts
* Coming up: EIA inventory data, 1430 GMT Wednesday
(Adds API data)
By Anna Louie Sussman
NEW YORK, Aug 12 Brent crude oil fell to a
13-month low on Tuesday as increased OPEC production helped
dampen concerns over potential supply disruptions in Iraq and
As well, worries about demand for petroleum were fueled by a
plunge in German analyst and investor market sentiment to the
lowest level in more than 1-1/2 years because of the crisis in
Ukraine. The survey, suggesting Europe's largest economy is
running out of steam, pressured German shares.
September Brent crude fell $1.66 to settle at
$103.02 per barrel. Brent's $102.65 intraday low was the lowest
price since July 1, 2013.
The September contract expires on Thursday.
U.S. September crude fell 71 cents to settle at
$97.37 a barrel, having fallen earlier to $96.81.
The International Energy Agency (IEA) said that while the
situation in several producer countries was "more at risk than
ever," supplies were ample and the Atlantic Basin was facing a
OPEC output hit a five-month high of 30.44 million barrels
per day (bpd) in July with a 300,000-bpd rise led by Saudi
Arabia and Libya, the IEA said.
"In terms of the physical side of things, particularly for
Brent, there are pretty high inventories at the Atlantic Basin
at the moment and that's holding back gains," said Ankit Pahuja,
a commodity strategist at investment bank ANZ.
Libya's output remains around 450,000 bpd despite clashes
between armed factions in Tripoli and Benghazi, a National Oil
Company spokesman said on Monday.
The IEA said Libya's output reached 430,000 bpd in July.
Production in Iraqi Kurdistan remains largely unaffected and
July exports from southern Iraq held at near record levels of
around 2.5 million bpd.
Oil prices also felt pressure on Tuesday from news that
Saudi King Abdullah had congratulated Haider al-Abadi on his
appointment as Iraq's new prime minister, after Abadi's
nomination had been supported by Iran.
The departure of Abadi's predecessor, Nuri al-Maliki, and a
successful formation of a unity government able to confront
insurgents in Iraq would reduce supply disruption fears, brokers
and traders said.
U.S. and European Union sanctions on Russia over the crisis
in Ukraine have not yet disrupted supply, but the IEA cautioned
that the sanctions are expected to trim Russian demand.
"I think the German investor confidence and IEA reports both
highlight the recent market theme about demand being
challenged," said John Kilduff, partner at Again Capital LLC in
Meanwhile, U.S. crude oil production is rising. Output
averaged 8.5 million bpd in July, the most since April 1987, the
Energy Information Administration said on Tuesday.
Crude inventories rose by 229,000 barrels in the week to
Aug. 8 to 364.2 million, compared with analysts' expectations
for a decrease of 2 million barrels, data from industry group
the American Petroleum Institute showed on Tuesday.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by
469,000 barrels, according to API.
The more closely watched government data from the Energy
Information Administration will be released Wednesday at 10:30
a.m. EDT (1430 GMT).
(Additional reporting by Jason Neely in London and Seng Li Peng
in Singapore; Editing by Marguerita Choy, Tom Brown, Chris Reese
and Peter Galloway)