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US sanctions on oil prices have not affected the price of crude oil

In Asian trading, oil prices were unchanged on Wednesday as they held onto gains made in the previous session due to sanctions. The market was looking ahead to the OPEC+ summit over the weekend.

Brent crude fell 1 cent or 0.01% to $69.13 per barrel at 0032 GMT.

U.S. West Texas Intermediate Crude rose by 4 cents, or 0.06%, to $65.63 per barrel.

Oil settled higher than 1% the previous trading day after the U.S. imposed sanctions on a group of shipping companies and vessels headed by an Iraqi/Kittitian businessman accused of smuggling Iranian crude oil under the guise Iraqi oil.

A preliminary poll on Tuesday showed that the U.S. crude stockpiles, as well as distillate and gasoline stocks, were also expected to have decreased last week.

Three analysts polled ahead of the weekly inventory data, estimated that crude inventories had fallen by an average of 3.4 million barrels during the week ending August 29.

Prices were held in check by soft economic data. U.S. Manufacturing contracted for the sixth consecutive month, as President Donald Trump’s tariffs hit economic activity and business confidence. This weighed on demand for oil.

Market participants were waiting for the outcome of the meeting of eight countries of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, which took place on September 7. Analysts believe that the group will not make any further changes in production until later.

Beijing will also hold its biggest-ever military display on Wednesday morning to mark 80 years of Japan's defeat in World War Two. Xi Jinping, the Chinese leader, will be at the forefront, flanked by Vladimir Putin, Russia's president, and Kim Jong Un, North Korea's leader.

The event comes after the Shanghai Cooperation Organisation Summit from August 31-September 1, where China presented its vision of a new international security and economic order as a direct challenge against the U.S.

Analysts believe that this could lead Trump to respond with secondary sanctions. (Reporting and Editing by Shri Navaratnam.)

(source: Reuters)