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Crude Oil Retreats on Friday After Earlier Rally, Still Ends Week with Gains

October 5, 2018 at 22:00 by Vladimir Vyun

Crude oil started Friday strong but ended the session with losses. Nevertheless, the commodity logged gains for the week. While Saudi Arabia and Russia signaled that they are ready to replace supply from Iran lost due to the US sanctions, traders were worried that it will not be enough to make up for the loss. Earlier this week, Russian Energy Minister Alexander Novak said that he does not rule out oil prices hitting the $100 mark.

Baker Hughes reported that the number of US oil rigs decreased by 2 to 861 this week. It was the third consecutive weekly decline. That suggests oil drillers were not ramping up production despite rising oil prices. Previously, traders were concerned that rising prices will encourage US producers to ramp up oil supply, mitigating the effect of the OPEC output cuts.

November contract for delivery of WTI crude oil was little changed at $74.34 per barrel as of 21:45 GMT on NYMEX today. December Brent crude declined 0.56% to $84.11 per barrel on ICE.

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