West Texas Intermediate (WTI) for October delivery traded at $69.12 a barrel on the New York Mercantile Exchange, down $1.25, at 9:52 a.m.in London.
"In addition, there is a risk to growth from an escalation of trade disputes", the agency said.
GLOBAL oil output hit a record of 100 million barrels per day in August, but the market may tighten and prices rise as exports from Iran and Venezuela decline, the International Energy Agency said today.
U.S. Midwest crude oil inventories fell to 105.9 million barrels last week, the lowest weekly level since January 2015, EIA data showed.
The EIA's most recent weekly ethanol production data shows production reached 1.087 million barrels per day the week ending August 31, up from 1.07 million barrels per day the previous week.
Kemp reiterated the growing concern of some pundits that USA production is running into problems due to "the lack of sufficient pipeline capacity to move oil from shale wells in western Texas and eastern New Mexico to refineries in the Midwest and export terminals on the Gulf Coast".
"Going forward, economic uncertainty, and hence questions surrounding global oil demand, coupled with geopolitical tensions, will need to be factored into maintaining a balanced market in the months to come", the report said.
It expects demand growth of 1.41 million barrels a day in 2019, revising downwards previous projections by 20,000 bpd.
With regards to the tumble in output from Iran and subsequent affect on oil prices, there could be "no formulation of gleaming" how powerful its exports will tumble, Atkinson stated. This news was being supported by the unknown, or the compliance with the USA sanctions on Iran.
Looking further ahead, however, Opec lowered its forecast, albeit modestly, for oil demand growth in 2019, saying rising challenges in some emerging and developing countries could negatively impact the global economy.
In 2018, demand for OPEC crude is expected at 32.91 million bpd, with demand for the second half to average 33.50 million bpd, the monthly market report showed.