UPDATE 7-Oil dips as prices struggle to break through demand uncertainty

* ADNOC cuts Asia crude supplies in Oct by 30% -sources
* Brent set for 5th monthly gain; 4th mth for WTI
* China's crude imports set for first fall in 5 months

(New throughout, updates prices, market activity and analyst
comments)
By Laila Kearney
NEW YORK, Aug 31 (Reuters) - Oil prices dropped on Monday,
with Brent slipping from a five-month high as global demand
remained below pre-COVID levels while U.S. production edged up.
Brent crude futures settled at $45.28 a barrel, down 53
cents, or 1.2%. U.S. West Texas Intermediate crude CLc1
settled at $42.61 a barrel, down 36 cents, or 0.8%.
Brent still closed out August up 7.5% for a fifth successive
monthly price rise. WTI logged a fourth monthly gain at 5.8%
after hitting a five-month high of $43.78 a barrel on Aug. 26
when Hurricane Laura struck.
Still, with key economies around the world limply recovering
from coronavirus lockdowns, analysts said the market could
remain oversupplied with fuel.
"The issues over demand just aren't showing signs of any
real improvement," said John Kilduff, partner at Again Capital
in New York.
At the same time, U.S. oil production climbed 420,000
barrels per day in June to 10.44 million barrels a day, the U.S.
Energy Information Administration said, putting further pressure
on prices.
Oil output in the U.S. Gulf Coast was lower as energy
companies continued efforts to restore platforms and refineries
shut before two storms struck last week. "There is still some concern about the lagging effects of
Hurricane Laura and what that's going to mean for refinery
operations as well as the impact on demand and exports," said
Phil Flynn, senior analyst at Price Futures Group in Chicago.
The U.S. Department of Energy said the West Hackberry
Strategic Petroleum Reserve site in Louisiana "sustained
considerable damage" from Hurricane Laura. Abu Dhabi National Oil Company told its customers on Monday
it will reduce October supplies by 30%, up from a 5% cut in
September, as directed by the United Arab Emirates government to
meet its commitment to the recent OPEC+ agreement. A mildly improved forecast of Germany's 2021 growth and a
survey on Monday showing strength in China's services sector
supported oil prices, analysts say, but hurdles for crude going
forward remain. China's crude imports in September are set to fall for the
first time in five months as record volumes of crude are stored
in and outside of the world's largest importer, data from
Refinitiv and Vortexa showed.