Oil moved lower on Tuesday as supply side.......>

OIL: Oil moved lower on Tuesday as supply side worries stemming from a tropical

storm around the U.S. Gulf Coast softened, with a little over 9% of U.S. Gulf

production shut in according to the latest BSEE estimate.

- Reports of an increase in crude production in Libya, in spite of civil unrest

in Tripoli, also weighed on prices on Tuesday.

- A RTRS sources report, released early Wednesday, noted that "Saudi Arabia

wants oil to stay between $70 and $80 a barrel for now as the world's biggest

crude exporter strikes a balance between maximising revenue and keeping a lid on

prices until U.S. congressional elections."

- On the Iran front the Economic Times suggested that "India will likely tell

the US that it won't be able to cut oil imports from Iran after sanctions take

effect early November and hopes to "sensitise'' Washington to the issues faced

by the country in this regard."

- Crude last operates off of the post-settlement lows, although WTI is ~$0.50

softer on the session, with Brent ~$0.30 worse off.